(CNN) - In the words of the chief executive and co-chief investment officer of Pimco, Mohamed El Erian: "This is Europe's moment of truth. For the sake of the region and that of the global economy, its leaders must come up with a solution at a time when, to use Nicolas Sarkozy's phrase, `the euro needs to be refounded’.”

Lest we forget, the problems of the eurozone have developed from a sovereign debt crisis, into a liquidity and – dare I say it – a solvency crisis. It has created all the ingredients for a banking meltdown that could cripple global growth.

So what are the chances of a final solution in Brussels this week? Pretty weak, I would say.
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Cannes, France (CNN)- It wasn't the kickoff to the Cannes G20 summit that we'd expected.

The official opening Thursday was hijacked by an emergency meeting late Wednesday evening hastily arranged by host French President Nicolas Sarkozy. In the dock: the Greek PM hauled in front of European leaders and banking chiefs to answer charges that he was jeopardizing the entire eurozone project after his shock announcement to call a referendum on the October 27 European Debt deal.

Things couldn't be worse, right?

Well maybe not. FULL POST