Eurozone crisis gains dangerous momentum

Despite the many summits and the many initiatives the ECB and other European policymakers have put in place over the past year, the eurozone crisis continues to rumble on.

Indeed it seems to be gaining a fresh and much more dangerous momentum over the past few weeks. Anybody who believed the measures suggested at the last EU summit in late June would provide something akin to a solution, are now re-considering, and with good reason.

The future sustainability of the euro is still very much open to doubt. We are now hearing much more talk from unexpected sources of a possible exit mechanism for Greece from the eurozone. There are no surprises there. The Greek economic situation is getting worse by the day and it is now looking at an economic contraction of at least 7% this year.