EUROZONE CRISIS

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• Increasingly ‘high stakes’/’make or break’ commentary before summit, fueled also by Monday’s market jitters [BBC] and record Spanish/Italian yields. [CNBC] The prevailing media sentiment is that Thursday could be a ‘last chance’ to restore eurozone stability, before further - and possibly irreparable - damage is done to the monetary union.

• A blunt FT editorial warns EU leaders of inaction, writing ‘there is nothing to be gained from maintaining the pretence that the survival of Europe’s monetary union in its present form is not under threat.’

• Roubini writes on the ‘Eurozone’s last stand,’ concludes ‘the only realistic and sensible solution is an orderly and market-oriented – but coercive – restructuring of the entire Greek public debt.’  

• WSJ’s Hannon notes that Ireland has ‘done everything right’ yet bond yields have surged, concluding that national fiscal problems became a currency crisis after Deauville. Hannon concludes that ‘it seems unlikely euro-zone leaders will have any answer to the contagion problem…. increasing the risk that what started off as a series of fiscal problems affecting a rather small part of the euro-zone economy will end up destroying the entire currency area.’