Breaking up the eurozone just isn’t an option

IN the two weeks ending last Friday, global equity markets experienced their worst performance in several months.

Given how traumatic markets have been recently, that is saying something. In contrast this week saw a much stronger market performance, although a lot of incredible volatility was seen from hour to hour.

The market reaction to Tuesday night’s meeting of EU finance ministers was muted to negative. Some statements were made about agreement being reached on boosting the strength of the European Financial Stability Facility and the possibility was raised about the IMF receiving more resources to help out countries who are finding it impossible or very expensive to borrow money on international markets.