Euro’s Spanish Showdown Needs Some ‘Shock and Awe’: Eric Chaney

The major battle in the fight for the survival of the euro will be fought on Spanish soil. Greece, Ireland and soon Portugal should be regarded as skirmishes. But Spain is different, in terms of scale and solvency.

If the strategy implemented by European Union policy makers is appropriate, the markets will shift their attention to other risks, such as inflation, after the decisive event has taken place in Spain. If the EU plan is seen as inadequate, the euro-debt drama will roll out of control and the financial risks will be so great to cause a perfect global systemic storm.