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8 August 2011

Germany holds the key to the euro’s future

Angela Merkel is the most powerful and most vulnerable player in the debt crisis.

By Ben Fox

We have had yet another day of turmoil on the markets and yet another example of “kicking the can” by the eurozone’s leaders. This morning, with great reluctance, the European Central Bank (ECB) started to buy Italian and Spanish government bonds to pacify panicked financial markets. It has worked today — bond yields on Spanish and Italian paper have reduced — but it won’t hold for long.

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