The euro zone’s steady inexorable crisis has accelerated as efforts to form a Greek government failed and new elections were called. The Financial Times reports that British Prime Minister Cameron will echo comments made earlier in the week by Canadian Finance Minister Jim Flaherty that Europe has to decide whether to build a true monetary union with risk-sharing institutions (fiscal transfers) or acknowledge that the single currency has failed.

Efforts to form a new government in Athens failed over the weekend, raising the prospects of new elections and Greece’s possible exit from the eurozone. Financial markets have responded predictably: equity prices are down; bond yields are at new euro-era highs in Spain, but down in Germany. Meanwhile, ominous warnings issue forth from Brussels about a possible amicable divorce between Greece and its euro zone partners.