The Euro-Crisis: Apocalypse Soon?
Posted: 22/05/2012 00:00
Sir Christopher Meyer
"Yet, something has recently changed. To weariness, now add raw alarm. Over the years, European politicians have repeatedly cried wolf, invoking deadlines for a final solution to the euro-crisis that they have then declined to honour. The eurozone has staggered on, inhabiting a no-man's land somewhere between imperfect remedies and terminal crisis. Merkel's Stability Pact is the perfect embodiment of this state of limbo - too little, too late. Now, the new deadline is the Greek general election on 17 June. David Cameron has even labelled it a referendum on membership of the eurozone.
But, this time the wolf may soon be at the door. It takes the ominous shape of a run on banks, precipitated by a victory in the Greek election of the anti-austerity parties.
This is where the raw alarm comes in. We are already witnessing what looks like the start of a run on Greek and, possibly, Spanish banks. If this were to turn into full-scale panic - and it could happen even before the Greek elections - the euro-crisis would move into a new, uncontrollable and infinitely more dangerous phase. We are talking about the possible breakdown of societies and polities."
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