London (CNN) – We are now on Day Two of Olli Rehn’s 10 days to save the euro and the tempo is heating up.
Mario Draghi, the new European Central Bank president, has tantalizingly hinted he will do more to help out provided euro-member countries start the process of economic unification. As he put it, the sequence of events matters. In our language: Don’t put the horse before the cart.
For Europe’s leaders the promise that the ECB will ride to the rescue is sweet music, perhaps even for Germany’s Merkel and the Bundesbank who are demanding a move to fiscal union as the only preferred long-term solution.
If we needed any reminder of how messy this is getting, the Governor of the Bank of England, Sir Mervyn King gave us a hefty dose of reality. He said the euro crises was an “extraordinarily serious and threatening situation” and that Banks should be prepared to withstand the crises. He admitted the Bank of England was preparing contingency plans for what might happen to the euro. (Gulp)
As Day Two comes to an end I paraphrase the famous quote attributed to Otto Von Bismarck: “Saving the Euro is like making sausages. it is best not to watch them being made."
London (CNN) – Just like the credit crunch three years ago, the current eurozone crisis will no doubt spawn endless books and provide many an interesting case study for the world’s future economists. Whether the lessons will be learned and future crises avoided depends largely on whether you believe history repeats itself. And that’s another topic that divides opinion as much as the eurozone itself.
Already academics at Oxford University’s Centre for International Studies have identified 10 key failures of Europe’s leaders in how they have handled the issue, even though the saga is far from over.
Associate Fellow Kirsty Hughes says that the errors are largely political, democratic and economic in nature.
Here’s a list of where Hughes says EU leaders got things so wrong:
About Business 360
CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.