Wealth Finance

Its without exaggeration to say that the European Union is at crisis point. Students of political and economic history might well be told in years to come that this week in November was a watershed for European monetary union – in the form of the single currency at least – and even for the EU itself.

Unusually warm autumn sunshine could not dispel the bleakest of moods in Brussels this morning, even before the Vice-President for Economic and Monetary Affairs sat down to deliver the EUs latest growth forecasts.

Italian bond yields had yesterday sailed above the 7 per cent mark, leading many – despite some intervention from the European Central Bank today – to conclude there is now way back for the Unions third-largest economy but to seek a bailout.

One which would be all but impossible for the EU and IMF to deliver and which would therefore place impossible strains on the economic structure underlying the Union.

Then Olli Rehn delivered his statement: Growth has stalled in Europe, and there is a risk of a new recession.

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