City feels the heat of euro crisis

“Euro in danger”, headlines The Times, and it’s Germany’s fault. “Angela Merkel stunned EU capitals by warning that the euro was in danger and triggered fears of a fresh financial meltdown”, the London daily writes. With Berlin announcing a partial ban on the risky practice of “naked short selling” by speculators, markets were in disarray on 19 May. Shares in London dropped nearly 3 per cent, with similar falls in Paris, Berlin and Madrid. The euro also hit a new low against the dollar before making a slight recovery. “The German Chancellor’s actions opened up new cracks in the single currency, drawing sharp criticism from France and prompting Brussels to issue an appeal for unity,” reports the Times, before reminding readers that “with 54 per cent of Britain’s exports going to Europe, the economy is not immune to the effects of the euro’s problems.”