Newton's Brain on the eurozone's new crisis

THE EUROZONE'S LATEST CRISIS

Paul Brain, head of fixed income at Newton, says the eurozone is facing a new, more significant threat that could lead to its collapse.

Back in June I said the efforts to prevent a collapse in the eurozone had the potential to succeed, but that a few caveats remained. The main condition was that the contingency fund should not actually be used, as the action of tapping this financial source could be enough to bring about its own demise. The other caveats were as follows: the ECB needs to continue to provide a significant amount of liquidity at cheap rates; the European economy should continue its economic recovery; and if the euro were to be a weak currency during this transition, then this would be beneficial. Unf...