Friday, 26 February 2010

Euro in danger as the Greek crisis deepens and Merkel admits currency is at risk

Daily Mail
"Greece's debt crisis has plunged the euro into a ‘ difficult situation’, the German Chancellor Angela Merkel admitted last night, prompting fresh fears about the collapse of the single currency.In the gravest sign yet of the international threat posed by Greece’s crippled economy, Mrs Merkel warned for the first time that the eurozone faces a ‘ dangerous’ period.The beleaguered euro initially fell in the wake of her comments and fresh speculation that Greece’s international credit rating may be downgraded.

On a dramatic day which also saw money markets around the world fall:

* The head of Germany’s leading debt management agency warned the euro would collapse if any member defaulted on its debt.
* U.S. regulators said they would investigate whether investment bank Goldman Sachs helped Athens disguise its budget deficit.
* EU inspectors visiting Athens told authorities they see a deeper than expected recession.

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