Spanish bailout, Greek elections make June a make-or-break month in debt crisis
One day, when historians look back to June 2012, they will likely find it was a make-or-break month for Europe. The debt crisis, now in its third year, has produced a moment of extraordinary clarity for the 17 countries joined by the euro: Either move toward real fiscal union or break apart.
After two years of incremental reforms brought on by the crisis, big questions have muscled their way onto the European agenda. Popular revolts against austerity and the conditions attached to bailouts in Greece, as well as a crisis of trust in Spain and its banks, create a dilemma for Europe’s leaders: They are forced to centralize more power in Brussels at a time when ever more citizens resist that idea.
In order to survive, the eurozone must do both. It must centralize more (move closer to a federal model of governance) and respond to its citizens’ concerns.
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