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Friday, February 10

10th Feb - Press Digest

Here are the ending week’s select articles on (mostly) the euro crisis from the ‘big three’ Der Spiegel, The Telegraph and The Economist.

DER SPIEGEL
Railing against the 'Fourth Reich': Anti-German Mood Heats Up in GreeceSpiegel
Nazi flags are hardly a rarity at Greek demonstrations these days. Anti-German tirades on primetime television have likewise become a staple. In Greece, a consensus has developed as to who is to blame for the country's economic misery. Age old stereotypes are flourishing.

'The Greatest Danger to Merkel Bears the Name Hollande'Spiegel
Angela Merkel's decision to campaign on behalf of French President Sarkozy has infuriated the German opposition, with some warning that it could damage German-French ties. But German commentators say that the bigger threat is posed by Sarkozy's Socialist challenger Francois Hollande.

Why Germany Isn't Benefiting from Euro's Woes Spiegel
There is a widespread belief that Germany is the big winner of the euro crisis, as investors stash their money in the euro zone's last safe haven, driving interest rates on German bonds down to record lows. But the idea is just a myth. Indeed, the crisis could end up costing Berlin dearly.

Crisis Desperation Drives Merkel to Campaign for SarkozySpiegel
Chancellor Angela Merkel's move to help President Nicolas Sarkozy in his bid for re-election is unprecedented. But so too is the European debt crisis. Berlin is driven by the fear that a Socialist president in Paris may overturn its strategy to rescue the euro. But Merkel's campaign assistance poses risks

If Greece Doesn't Reform, 'It Can't Expect Solidarity'Spiegel
In a SPIEGEL interview, Luxembourg Prime Minister Jean-Claude Juncker, head of the Euro Group, talks about the need for Greece to push ahead with economic reforms. If the country doesn't meet Europe's demands, it will have to declare bankruptcy in March, he says.

'Could the Germans Survive a Crisis like Greece's?'Spiegel
Time is running out for the Greek government, which needs to reach a deal on unpopular austerity measures if it is to secure a second EU/IMF bailout. German commentators argue the country has already suffered enough, saying what are needed now are measures to stimulate growth.

It's Time To End the Greek Rescue FarceSpiegel
Whether it be an escrow account or a budget commissioner, the latest demands by Germany show just how absurd negotiations over Greece's future have become. It is high time to bring an end to this tragicomedy.

THE TELEGRAPH
Euro crisis averted? Don’t believe a word of itThe Telegraph
Greece may be clinging on, but the eurozone’s real problems remain resolutely unaddressed.

The IMF, EU and ECB – Greece's payday creditorsThe Telegraph
If someone is insolvent, you should not lend him more money. That's an old truth, but a sound one.

Greek death spiral acceleratesThe Telegraph
It is what can happen if you join a fixed exchange system, then take out very large debts in what amounts to a foreign currency, and then have simultaneous monetary and fiscal contraction imposed upon you.

For Greece a tear, for Brussels a blushThe Telegraph
So what happens in the April elections? Does anybody think that the new government will comply with the Merkel-Troika Diktat, and continue complying until 2020 when the country will still be prostrate with a public debt of 120pc of GDP – if all goes perfectly?

An orderly EMU break-up, à la FrançaiseThe Telegraph
Euro break-up plan drafted by French economists: "The obstinate determination of governments to take us by forced march deeper into the euro impasse can only lead to the general aggravation of the economic situation in Europe."… "National currencies should be recreated in each eurozone country".

Debt crisis: as it happened
February 10 (online later)

THE ECONOMIST
Sovereign bonds: Oat cuisineThe Economist
A stodgy asset class has become more complex and more dangerous

Buttonwood: Keep on truckingThe Economist
Why the old should not make way for the young

Short-selling: Getting to the naked truthThe Economist
A regulatory probe sheds light on manipulative shorting

Greece’s woes: Brinkmanship in AthensThe Economist
Tough fiscal negotiations run into hard political reality

Charlemagne: 1789 and all thatThe Economist
The history of fiscal federalism may offer the euro zone some lessons

Swiss banking secrecy: Don’t ask, won’t tellThe Economist
Amid a global squeeze on tax evasion, Switzerland is the prime target