Europe's single currency down, but not out

European Central Bank (ECB) President Jean-Claude Trichet isn't sugar-coating the issue. In an interview with the German magazine Der Spiegel, he said that Europe is in the most difficult situation since the Second World War, possibly even the First World War. Despite the dire straits, however, Trichet sees a way out of the crisis.
"What we need is a quantum leap in mutual surveillance of economic policies in Europe," Trichet told Spiegel. "We need improved mechanisms to prevent and punish misconduct."
Part of the problem in the eurozone comes from countries ignoring the European Stability and Growth Pact, which sets a budget deficit limit of three percent of a country's gross domestic product (GDP).

For more: Europe's single currency down, but not out | Europe | Deutsche Welle | 15.05.2010