Chatfeild-Roberts: My view of the world as we enter 2012

The crisis in Europe has legs yet. The ‘Merkozy' plan to introduce stricter fiscal compliance may have soothed financial markets' nerves in the short term, but there is significant uncertainty as to whether weaker countries, which are already struggling under enormous debt burdens, will be able to cope with the new disciplines. Moreover, if no-one kept to the original set of Stability Pact rules (including Germany!), why should a new set of rules fare any better? The failure by European politicians to treat this is an insolvency crisis rather than a liquidity crisis will ensure that Euro...