The existential threat to the EU

Away from the Liverpool, the Eurozone crisis continues. Market confidence appeared to be growing after European leaders sketched a debt recapitalisation deal for Greece over the weekend. Shares in deeply exposed French banks rallied for 2 days when they were assured that their losses in Greece would be covered by the expanded EFSF.

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Patrick O’Flynn

It’s unlikely Rachel Reeves is going anywhere

But, 48 hours of gathering calm has been broken by news of a split over the fledgling debt deal (£). Domestic political pressure in Germany and Holland seems to have forced those countries to insist that private sector interests take their share of losses in Greece, a sign that these governments are reluctant to ask their taxpayers for money to sustain the single currency and, of course, bad bank debts. Stock markets have been shaken by the news, with French banks suffering particularly sharp falls: Soc Gen has shed 6.05