Eurozone under crisis

Off the radar somewhat but fair play for the Independent in highlighting the story this morning is the worrying trend in European stock markets which have been plunging on fears of debt in Southern Europe.

As the paper reports

Some £30bn has been wiped from the FTSE in recent days, and it lost a further 1 per cent of its value yesterday as European policymakers again failed to reassure markets that the "contagion" could be contained. The crisis could push Europe, including the UK, into a "double dip" recession. In foreign exchange markets, the euro slumped to its weakest level against the dollar since May, and its weakest level against the yen for more than a year.

and as the FT says

The rout sent investors fleeing to the safety of US government debt, boosting the dollar to its highest level against the euro in more than eight months and sending US Treasury prices higher only days after the Obama administration forecast a $1,556bn deficit for 2010.

Problems in Greece,Portugal and Spain are puuting the Eurozone under its biggest test since formation and whilst the Greek government is urgently addressing those problems,it will need the giants of the zone,notably Germany to support such measures