Euro debt crisis is political test for bloc

"The challenges facing the euro zone are very serious," said Simon Tilford, chief economist for the Centre for European Reform in London. "For countries that have become pretty uncompetitive in the euro zone and have weak public finances, the current environment is very dangerous." ..."The southerners can do their best to cut costs and be competitive," Mr Tilford said. "But they need the others to create more domestic demand and be less export dependent."