Nor is default.
The EU is pushing for tougher Stability Pact sanctions but rules out Germany’s “orderly state insolvencies” idea.
Germany pushed to the margins once again…not a good sign for the euro.
Unless German leadership stops playing domestic politics and starts thinking in a European context, the euro is in for tough times ahead in a macro sense. Can it rally four or five cents? Sure. But its role as the world’s alternative reserve currency will be severely diminished.