Wolfgang Munchau, writing in the Financial Times, says December 9th may well be Armageddon for the EU:

If the European summit could reach a deal on December 9, its next scheduled meeting, the eurozone will survive. If not, it risks a violent collapse. Even then, there is still a risk of a long recession, possibly a depression. So even if the European Council was able to agree on such an improbably ambitious agenda, its leaders would have to continue to outdo themselves for months and years to come. … Italy’s disastrous bond auction on Friday tells us time is running out. The eurozone has 10 days at most.

Merry Christmas.

UPDATE: Moody’s says all European sovereigns are in danger of a bond rating downgrade, and the OECD today warns policymakers to be “prepared to face the worst.”