The euro does not have a stable basis even after the "Pact of the euro" agreed by leaders of the member states, Thomas Mayer, chief economist at Germany's biggest lender Deutsche Bank, told CNBC Thursday.
As investors increasingly shun risk, concerned over developments in the Middle East and Japan, which they fear could derail the recovery, analysts at Barclays Capital are also turning more bearish, advising investors to take positions that are more risk neutral.
This was pegged as the summit to end all summits; the end of the euro-zone debt crisis; a clear road map for the future.
Italy has stepped up a campaign against French buy-outs of Italian companies, drawing up a bill aimed at thwarting unwanted foreign takeovers and opening a tax probe into two deals, the Financial Times reports.
The crisis in Japan following the devastating earthquake and tsunami that killed thousands of people will not have an effect on the European Central Bank's interest rate policy, Manfred Schepers, vice-president finance and chief financial officer for the European Bank for Reconstruction and Development, told CNBC.
Greece will have to restructure its debt, but Spain is out of the woods, according to former European Central Bank Board Member Otmar Issing.
With Portugal’s main opposition Social Democrats (PSD) announcing they will vote Wednesday against a raft of new austerity measures proposed by Prime Minister Jose Socrates, analysts expect the country will have no choice but to seek a bailout from Europe.
Thoughts on the conflicts in the Middle East, with Steve Cook, Council On Foreign Relations senior fellow.
A list of measures EU heads of state will likely sign off on later this week could very well entrench Germany’s strength at the heart of Europe and the weakness of those on the periphery. CNBC'c Patrick Allen comments.
European regulators should stop banker-bashing and allow banks to do their job or risk losing ground to competition from the US, Middle East and Asia in the financial sector, Howard Wheeldon, senior strategist at BGC Partners, told CNBC.com.
Fears that the world economy is facing another downturn are being overplayed, despite the political upheaval caused by recent unrest in the Middle East and the earthquake and subsequent tsunami in Japan, Jim O'Neill, chairman of Goldman Sachs Asset Management, said.
Having analyzed the impact on the dollar of numerous wars and military interventions in the Middle East since 1973, Bank of New York Mellon is telling investors that the greenback should hold up well as the international community imposes a no-fly zone over Libya.
Defaults in euro zone sovereign debt and a major fall in US stocks and are unlikely before 2013, according to a research report by Smithers &Co.
Don't get too caught up in this rally, the "Mad Money" host said.
Premier Silvio Berlusconi has sat down with the enemy, telling an opposition newspaper that he is too old to have had all the sexual encounters he is accused of by Italian prosecutors.
The world economy is still very fragile and the impact of the Japanese earthquake and the nuclear crisis is distressing, Stephen Roach, non-executive chairman at Morgan Stanley, Asia, told CNBC in an interview.
Jean Monnet, the father of European integration, once remarked that “Europe will be forged in crises, and will be the sum of the solutions adopted in crises.”
"I think this whole thing is a Ponzi scheme in which governments that are already in deep red ink are trying to generate more red ink," Niall Ferguson, history professor at Harvard University, told CNBC.
Markets have cheered a surprisingly broad European package of measures to tackle the government debt crisis that has over the past year threatened the existence of the euro currency.
Friday night’s deal in Brussels was only made possible by sovereign downgrades and skyrocketing bond yields that still have the potential to push the periphery countries over the edge.