Six reasons the EU won't fail in 2012

Germany has some key advantages when it comes to convincing European governments to sacrifice budgetary authority to outside powers in the year ahead.

The European Union and eurozone will survive 2012, and Europe's financial crisis will stabilise, at least temporarily. However, Stratfor expects Europe to continue its long, painful slide into deepening recession. We expect accelerating capital flight out of peripheral European countries as investors in Europe and farther afield lose confidence in the European system. We expect financial support measures to be withdrawn on occasion to maintain pressure on governments to implement austerity, which will lead to financial scares and extreme volatility.

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