Attempts at austerity and deleveraging in Europe have converted an economic problem into a political dilemma, with leftist governments rising against Germany's austerity-laced rescue packages. Germany now faces a tough economic decision that will involve choosing between a breakup of the current euro system and a movement toward a common fiscal policy in Europe.

Desmond Lachman's response to Daniel Gros's article, "Portugal is Delaying the Pain it Knows is Inevitable."

With each passing day, Greece's economic and political malaise deepens despite one massive International Monetary Fund-European Union bailout package after another to keep that country afloat.

It is not a moment too soon for the IMF to start planning how to respond to a spate of Euro-zone sovereign debt defaults, and the possible Euro exit of a few countries within the next year or so.

Recently there have been a number of disturbing economic and political developments in Europe that heighten the risk that the Eurozone will experience a spate of sovereign debt defaults within the next six months.

A closer look at how far a number of Greece's key economic ratios have gotten out of line suggests that we are dealing more with a solvency than a liquidity problem.

Wolfgang Münchau seems to be wide of the mark in asserting that the present global financial crisis will lead to the early expansion of the eurozone.

A Greek or Irish default could bring into serious question the serviceability of around $2 trillion of European sovereign debt, a magnitude that should not be dismissed for its potential impact on the Eurozone's overall economy.