EU Economics: Greek Tragedy foresees the demise of the Euro

Angela Merkel has warned that the euro is in turmoil and is desperately trying to ensure that the rescue package is passed by the German parliament in a vote tomorrow.

Stephanie Flanders suggests that she needs to make this a crisis about “who runs Europe - governments or the markets?” if the vote is to be won. Her Stephanomics blog focusses on the leading role that Germany intends to play in discussions about how to implement and co-ordinate the package.

Her view is that Euro Zone aggregate demand is going to grow even more slowly than previously predicted, which will hold back GDP growth for other economies that rely upon Euro Zone customers to buy their exports.

However Reuters’ finance blogger Felix Salmon gave an even more gloomy scenario in this series of mock news reports broadcast on the Today programme this morning.

He imagines the fate of Europe’s single currency and the unrest that might accompany its break-up. Could this really happen? It could make a nice discussion piece to break up the final stages of revision classes next week!