EUROPEAN SOVEREIGN DEBT CRISIS

The Government Deficit/Surplus of Greece, Ireland, Italy, Portugal, Spain and the United Kingdom in relation to that of the Eurozone and the European Union between 2002-2009 (Source 2010 European Sovereign Debt Crisis Wikipedia).

Acropolis Now was how The Economist Magazine recently described the Greek Debt Crisis. However, the "European Stabilisation Mechanism" agreed by EU Finance Ministers this weekend is also a response to the wider Sovereign Debt Crisis across Europe. Nor is this problem confined to the Eurozone, for the crisis again threatens contagion across the international banking system. Whilst the markets have responded positively to EU's actions - which are not proving popular amongst the prudent Germans - the threat of moral hazard has raised itself once more, with protection of necessity being afforded to the imprudent.

This is precisely why British politicians need to closely follow Lady Prudence and swiftly form a government capable of tackling economic and financial problems at home and abroad. The role of the opposition in this process will also be crucially important.