Money Week: Europe's debt mountain is crushing the euro

Currencies: Europe's debt mountain crushes the euro - MoneyWeek

If fiscal problems worsen, markets will once again question the feasibility of the EMU project, adds Stuart Bennett of Calyon. The key problem is that there is a single monetary policy for countries at varying stages of the economic cycle and no central fiscal authority to move large amounts of cash from rich to poor areas to temper the impact of a recession. Divergence within EMU will become "a major issue", says BNP Paribas, and a long-term negative for the euro.

Note EU-Digest: Interesting to see that the people that are the most critical about the EMU come out of the European banking sector. They are basically biting the hand that feeds them.