Cooley, Richardson & Schoenholtz, Bloomberg
In spite of Sunday’s victory of pro- bailout parties in the Greek election, the European Monetary Union remains in a battle for its survival. What began as a debt predicament is now compounded by a rapidly expanding banking crisis and growing political instability that threaten European integration.Recent European backing to stem the run on Spanish banks was a welcome step away from the prevailing position that fiscal and banking problems aren’t candidates for coordinated action. Unfortunately, the details of the support for Spanish banks are vague, and were insufficient...