Change in the wind?

The German finance minister continues to press the Berlin line that Spain must continue with austerity measures, even though the evidence is that it has the potential to drive Spain into serious civil unrest, quite apart from the risk of bankrupting the nation.  This could lead to Spain leaving the euro as it has too big an economy to bailout.

Meanwhile, the idea is being circulated of a 'growth pact' to go alongside the 'fiscal pact'.  It will be interesting to see how Germany reacts to this as it will involve 'real new money' whereas the fiscal pact does not.

Hopefully clarity on the direction of measures to counter the effect of the eurozone on sovereign states will become apparent after the Greek general election and the French presidential election (both this weekend).

http://www.spiegel.de/international/world/0,1518,830589,00.html
UN agency criticises austerity measures.

http://www.telegraph.co.uk/finance/comment/jeremy-warner/9237279/Even-Chancellor-George-Osborne-would-shy-from-eurozone-austerity.html

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100016822/a-glimmer-of-hope-for-the-austerity-wasteland-of-south-europe/

http://blogs.telegraph.co.uk/finance/matspersson/100016808/lecturing-germany-on-the-euro-could-be-a-diplomatic-own-goal-for-cameron/

http://www.telegraph.co.uk/finance/financialcrisis/9235620/Cameron-says-eurozone-debt-crisis-has-years-to-run.html

http://www.telegraph.co.uk/finance/financialcrisis/9236796/Eurozone-bank-lending-slows-despite-ECBs-1-trillion-cheap-loans.html

http://www.telegraph.co.uk/finance/financialcrisis/9235923/Spain-slides-back-into-recession.html

http://graphics.thomsonreuters.com/12/04/EZ_RECCMP0412_SB.html
Interactive EU recession map.

http://www.spiegel.de/international/europe/0,1518,830594,00.html
Merkel., France/Germany, austerity