Tomorrow's meeting in Brussels of European Union Finance Ministers has been canceled. Apparently the ministers have been unable to craft a financial rescue package not only for Greece, but also for Italy and Spain. A meeting of EU leaders will go on as scheduled. The expectation seems to be that the prime ministers will work something out and provide direction to the finance ministers.
Doesn't sound good. The usual way in international negotiations is for functionaries and responsible ministers to work out the details and for the principals to meet and ceremoniously announce the resulting agreement. When the procedure is reversed, it doesn't bode well for agreement.
This is of interest to us because? The EU as a whole is a larger economy than our own and is our largest trading partner. Economic contraction in the Euro zone would be bad enough, but a crisis in the European banking system will inevitably spread to the US.
Cross your fingers that they will work it out. Don't, however, hold your breath.
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