April 25, 2012
These are very worrying times for the euro zone. The ECB’s LTRO (long-term refinancing operation) in November and February, which made available €1trn in 1% funding to more than 800 European banks over a three-year timeframe, brought a temporary respite to the woes besetting the region. But the past few weeks have seen an escalation in the crisis. If there is a natural evolution to this crisis – then it has reached the stage of political legitimacy.