Greece takes centre stage.

Spain's banks require massive capitalisation as property prices fall.  Ireland has a referendum soon on the fiscal pact.  Holland's coalition us broken.  The Franco-German axis has been damaged (but not fatally) by the election of Hollande as France's president.  Italy and Portugal have fallen off the radar in recent weeks, but both have problems that will resurface.

And yet, it is Greece that is back in the headlines.  The Greek electorate had the temerity to throw out the parties of austerity and instead elected a curate's egg of parties of the political Left and Right.  there is serious doubt as to likelihood of a coalition being formed which commands a parliamentary majority.  Should this be the case, then another general election has to be held.   However would a second general election resolve the impasse?

It is looking more and more likely that  the best way forward for Greece is to have an orderly withdrawal from the euro.

http://blogs.telegraph.co.uk/finance/philipaldrick/100016977/greece-is-at-the-epicentre-of-a-new-euro-crisis-and-its-chaos-will-spread/

http://www.spiegel.de/international/europe/little-chance-of-greek-parties-being-able-to-form-government-a-831909.html

http://www.telegraph.co.uk/news/worldnews/europe/france/9250801/French-and-Greek-political-earthquakes-point-to-rise-of-the-anti-austerity-movement.html

http://www.telegraph.co.uk/news/worldnews/europe/germany/9250798/Angela-Merkel-facing-political-fight-of-her-life-over-France-and-Greece-austerity-rejection.html

http://www.spiegel.de/international/europe/chancellor-merkel-wants-to-teach-president-hollande-merits-of-austerity-a-831845.html

http://blogs.telegraph.co.uk/news/danhodges/100156726/le-grand-mensonge-why-francois-hollandes-end-to-austerity-message-is-just-smoke-and-mirrors/

http://www.imf.org/external/np/sec/pr/2012/pr12160.htm
IMF press release.

UPDATES:

http://www.telegraph.co.uk/finance/financialcrisis/9252878/European-markets-slump-on-Greek-and-French-fears.html

http://www.telegraph.co.uk/news/worldnews/europe/italy/9252260/Italy-facing-uphill-battle-to-ratify-EUs-fiscal-compact.html