The European Union has rarely looked so united. The disparate members have joined up to mount a strong defence of the region’s single currency. But the EU has also never looked so close to dissolution, divided by tensions between more and less fiscally responsible and economically successful countries. The fate of the union could follow either of two historical precedents with starkly different outcomes.
By Martin Hutchinson and Edward Hadas
Investors rarely like wars or rumors of war. But for global markets, the renewed military tension on the Korean peninsula comes at a particularly sensitive time. The threat to this fairly big economy — South Korea’s GDP is four times larger than Greece’s — adds to the impression of a world out of control.