by Calculated Risk on 12/30/2011 07:30:00 PM

And another reminder that Europe will remain on the front pages in 2012:

From Bloomberg: Merkel Says She’ll ’Do Everything’ to Save Euro

German Chancellor Angela Merkel said she expects turbulence in 2012 as she does “everything” to save the euro amid the Europe’s sovereign debt crisis.

“The path to overcoming this won’t be without setbacks but at the end of this path Europe will emerge stronger from the crisis than before” ... “Today, you can trust that I will do everything to strengthen the euro,” Merkel said. “This will only succeed if Europe learns from the mistakes of the past. One of these is that a common currency can only be successful if we cooperate more than in the past in Europe.”

Meanwhile, more the Telegraph: 'Euro will be stable' claim is ridiculed

[German finance minister] Wolfgang Schauble said he was confident that the currency union will survive and the political measures will underpin the shattered eurozone economies. "We will be far enough along in the next 12 months that we will have banished the dangers of contagion and stabilised the eurozone," he told newspaper Handelsblatt.

Unfortunately Schauble has consistently been wrong, and believes the answer is always more austerity.