German news magazine Der Spiegel on Sunday quoted Italian Prime Minister Mario Monti as saying in an interview that "the tensions accompanying the eurozone over the past years already bear the signs of a psychological dissolution of Europe."

Monti further told the magazine that the euro's disintegration would "destroy the founding of the European project."

Eurostat released its June estimate of real retail sales for the Euro area. On a month/month basis, real retail sales increased at a rate of 0.1%. However, on a trended basis, the 3-month/3-month average growth rate was down 0.7% in the three months ending in June. Given that the 3-month trended pace of contraction quickened compared to Q1, real consumption is likely to detract from Q2 GDP growth.

Euro-area services and manufacturing output contracted for a sixth month in July, adding to signs the economy is edging toward a recession.

A composite index based on a survey of purchasing managers in both industries rose to 46.5 from 46.4 in June, London-based Markit Economics said in a final report today. Markit had initially reported a reading of 46.4 for July. A reading below 50 indicates contraction.

"With incoming new business falling at the fastest rate for three years and service sector companies becoming the gloomiest about the outlook since early 2009, there seems little prospect of any improvement soon," Chris Williamson, Markit's chief economist, said in today's report.

Economist Shayne Heffernan is not keen on buying the Euro "Europe has yet to solve any problems, we have seen many band-aids but the disease of big government persists."

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Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service