Eurozone break-up fears persist despite EU bailouts

As the Eurozone sovereign debt crisis rumbles on into 2011, the threat of a country defaulting and even exiting the currency union grows ever more real. Credit looks at the remaining options available to Europe’s policymakers to prevent that from happening.

Patch job: Law makers have failed to alleviate the dangers of a country exiting the Eurozone

2010 was a rum year for Europe’s young currency union. While much of the world – particularly the developing world – has pulled out of recession, the Eurozone has had a limp recovery. Instead of robust growth, it has lurched from debt crisis to debt crisis. First Greece received a bailout in May; then Ireland was forced to accept external support in November. As the year drew to a close, markets had already shifted their attention to Iberia and even Italy.

The European Union and European Central