Splits in Euro Zone Emerge Amid Debt Crisis


"Splits in Euro Zone Emerge Amid Debt Crisis" (New York Times) A solid big-picture analysis of a story we've been covering all day:

"Even as Europe struggles to contain its latest debt crisis, fresh fissures are emerging that show the euro zone diverging into two — or even three — different economic parts that threaten to compound the problems even further. After publication of new figures Monday, a senior European Union official acknowledged for the first time that a two-speed euro zone might now be developing, with Germany racing ahead while debt-laden countries on the Continent’s periphery battle stagnation. 'It has to be admitted, there is a certain dualism in Europe,' Olli Rehn, the European commissioner for economic and monetary affairs, said Monday while announcing the commission’s autumn economic forecasts."

Clinton Calls Wikileak "An Attack on the International Community" (Wall Street Journal)

Secretary Clinton said she "deeply regrets" the incident, and offered assurances that the government is ratcheting up security to prevent such a leak in the future. The article continues: "The Obama administration ordered a governmentwide review of how agencies safeguard sensitive information in the wake of the unauthorized release of the documents. The publication of the sensitive diplomatic cables Sunday exposed years of U.S. foreign-policy maneuvering. Among activities detailed in the documents, gathered by the website WikiLeaks, was the extensive, and increasingly successful, push by the U.S. for an international consensus to confront Iran's nuclear program."

Stocks Down, but Poised to Close Above Lows (Yahoo Finance via AP) "The euro fell to a two-month low and investors flocked to the safety of the dollar and Treasurys after the European Union agreed Sunday to provide nearly $90 billion in rescue loans for Ireland. The move is designed to shore up Ireland's cash-strapped banks, but it does little to relieve concerns about other European countries including Portugal and Spain." The numbers: "The Dow Jones industrial average fell 33.15 points, or 0.3 percent, to 11,057.11 in late afternoon trading. Earlier in the day, the Dow fell below 11,000."

Was Deficit Commission "Doomed from the Start"? (Politico) "Whether President Barack Obama’s deficit commission can surmount the fundamental differences that have stymied it for months will determine which legacy it is known for. And that seemed in doubt Monday as the commission announced it was cancelling its last scheduled meeting Tuesday to allow more time for one-on-one meetings in an effort to agree on a set of recommendations."