Why Merkozy is destined to fail

Investors are hoping Angela Merkel and Nicolas Sarkozy can resolve the eurozone debt crisis, but there's little chance their relationship will even last beyond May.

Whoever believed that the never-ending eurozone crisis had been solved during the holiday break would have been surprised by the difficult French bond auction last week, Italian yields once again shooting above the crucial 7 per cent mark, and renewed speculation about a Greek default.

In short, there would have been enough reasons to refocus on the core problems of the European crisis after Christmas.

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