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Vicious circle of crisis: 'EU deformed at birth'


Greece has ground to a halt, as public service employees walk out over new pay cuts, job suspensions and an emergency property tax. The strike is the first major test for the new technocrat leadership in Athens, which secured the next EU bailout tranche by pledging to go forward with austerity. On Wednesday the EU monetary affairs chief warned the Eurozone has just 10 days to stabilise the single currency and stem the crisis. Next week EU leaders are set to try and hammer out fresh solutions. Financial analyst Johan van Overtveldt says tighter economic governance is needed, but countries' sovereignty could be sacrificed in the process.

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