Breathing life into the euro

Eurozone countries should seek ways to avoid breakup and restructure to address the fundamental problems

The eurozone is at a crossroads and the euro is now in an extremely dangerous situation. Until final ways and means of resolving the crisis are found, rather than bailouts which simply buy time, the euro's survival is not guaranteed.

As the eurozone sovereign debt crisis worsens, investors worldwide have begun to flee to safe havens, without thought for the yields on their investments. The US 10-year yields fell to 1.62 percent by the end of May, a level last reached in 1946. German two-year bond yields fell to zero for the first time, and UK interest rates fell to 1.64 percent, the lowest since records for benchmark borrowing costs began in 1703. Financial market sentiment toward the euro shows little optimism.