Trying to stop the eurozone contagion, they have agreed a further €109bn plus called in private bondholders, to contribute a further #37bn under conditions that amount to a partial default. Sarkozy says that the EU has effectively created a European Monetary Fund. Will they succeed? In the FT, Philip Stephens asks whether this crisis, and the US equivalent, are a spasm or a spiral. He concludes it is too early to panic: bold leadership could solve both crises.