Financial Times: “This is going to be the year in which the eurozone will have its moment of truth”

From Financial Times columnist Wolfgang Münchau. he says that with elections in 3 European countries this year, Greece, Spain and Portugal, “the probability of at least one political upset is very high indeed”.

Greece is up first, with elections on 25 January 2015. Münchau argues that “the political choice is essentially between the status quo of fiscal austerity and an alternative of negotiated debt default. The economic argument for the second course of action is compelling” … and concludes (bolding mine) “I see no way out for Greece without a debt restructuring. And I don’t see a debt restructuring inside the eurozone. ”

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On Spain … “The Spanish private sector needs a debt restructuring as badly as the Greek public sector”

The article is here (gated): Political extremists may be the eurozone’s saviours

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More from over the weekend:

• German government sees Greek exit from euro as a manageable outcome

• Greek opposition leader stirs the pot further … QE4me! (and write off my debt)