With the cost of insuring Spanish, Italian, Irish and even German government debt against default rising this morning, Ireland’s €85bn rescue package has not calmed the markets. One expert believes Ireland is effectively insolvent while another fears the eurozone is heading for ‘total meltdown’

 These days, market shows less confidence on euro because of the continuous sovereign debt problem in the “Mediterranean” countries. The problem can hardly be solved without addressing the structural integrity of the euro.

 The Eurozone, as a whole, doesn’t have the much pressure about the balance of the economics superficially. But looking from the inside, the unbalance of the economics and trade is relatively serious. Compared with the high trade surplus of German, some other European countries are even facing the heavy excess of import. Saying an isolated country, it can balance the situation by currency rate. However, as a whole union using an identical currency, there’s no choice for them to choose. And Euro’s rate is usually based on German, which is always having trade surplus.

 It is said that a new round of bank ‘stress tests’ is planed next year. Nonetheless, if the the structural integrity of the euro doesn’t change, problems will last.