Can Greece help Germany solve its crisis?
- The Greek PM and the German Chancellor get together to discuss the German crisis in the Euro area. Greece has a history of deficit, but in many ways the German history of surplus is more problematic for the Euro's stability, and of course implies Germany has a standard of living significantly below its potential.
- The problem is that, much like a fixed exchange rate system, the burden of correction in an imbalanced and dysfunctional monetary union lies too much on the deficit countries, with markets rarely able to exert corrective discipline on the surplus countries.
- French local elections saw the opposition UMP come out ahead according to exit polls, with the anti-party the Front National in second place and the governing Socialists in third place. The result may have implications beyond France - in Spain, for instance, where the rise of anti-establishment parties has concerned investors.
- There is a barrage of Fed speakers today, in the wake of Patience being toppled from her monument last week. The speakers include Williams and Vice Chair Fischer. US existing home sales data and the flash Euro area consumer confidence figures are also on the calendar.