Deserting the good ship Merkozy

Europe has been able to keep its leaky ship together through the remarkable combination of Nicolas Sarkozy and Angela Merkel. Now that's unravelling, markets are trembling.

One step at a time, Europe is unravelling. And because there are trillions of dollars of debt from governments, local bodies and companies measured in euro, the world shivers every time the European situation worsens. Any full-scale unravelling of the euro will be very painful.

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