Martin Wolf is at it again.
“Which part of the word “no” do Gerhard Schr?der, Germany’s chancellor, and Jacques Chirac, the French president, fail to understand? France and the Netherlands have rejected the constitutional treaty: it is dead. But the rejection of the treaty by two of the original six members raises profound questions about the [...]

Of course they are all in the Lega del Norte. This time it is the turn of Reform Minister Roberto Calderoli.
Earlier Justice Minister Roberto Castelli entered the fray:
“Does the sterling pound not have economic foundations? Does Denmark live in poverty because it is outside the euro? Are the Swedes poor?” With these three questions [...]

Economics Commissioner Joaquim Almunia presented a report to the Commission in Strasbourg yesterday. (The report is here: pdf). Essentially Almunia argued that Italy’s deficit at 106% of GDP was way above the target 60% set by the new version SGP. He also argued that it was neither temporary, nor the product of exceptional circumstances (the [...]

Bloomberg’s Mathew Lynn has been pretty consistently skeptical about the workability of the common currency. Personally I find it difficult to disagree with the following:
“The euro, the common currency shared by 12 EU nations, will weaken considerably as Europe enters a long period of political instability. Recriminations from the collapse of the constitution will be [...]

I’ll keep tracking the euro again today, and updating as appropriate. I’ve just posted some stuff in the comments section of Afoe:
Looking at the newspapers the euro steadied up overnight, but seems to be on its way down again in Tokyo. As I write it is trading at $1.2194, ten minutes ago it was [...]

Having just posted on Afoe suggesting I expect a quieter day, I have just noticed this:
“The euro fell against the dollar after the manufacturing report. The European single currency traded at $1.2285 at 10:15 a.m. in Frankfurt, down from $1.2304 late yesterday in New York, according to electronic foreign-exchange dealing system EBS.”
Still this fits in [...]

The euro fell to a seven-month low against the dollar early this afternoon, touching $1.2479 - well below the $1.2575 it bought in New York late Friday. The is a change of about a cent in a day. It is too early yet to draw any further conclusions.

Brad Delong has a post on the Euro, and Dave at Macroblog has a couple of relevant posts (and here) . In particular he has an extended extract from the Martin Wolfe article on the Euro and Italy, plus he reproduces a useful graphic showing how ’sovereign spreads’ in Italy Greece and Portugal declined dramatically [...]

The ever readable Martin Wolf has been writing in the FT on Italy:
“Let us think the unthinkable: could the eurozone disintegrate? The answer is yes. Disappearance of the zone as a whole seems hugely unlikely, so long as the commitment to the European project survives. But the exit of one (or more) members, a sovereign [...]