It is difficult not to feel deep sympathy for European leaders face a problem they did not see it coming, did not deal, but can not ignore. Back to the wall, they tell us that every state in the Eurozone will take steps to reduce potential budget deficits or excessive debt.
You feel the desperation with which they call all their wishes stabilizing the Euro. In various forms, they reaffirm what is at the heart of the device of the common currency. Their intentions are unquestionable and their appreciation for the work of the European Central Bank is moving. Nothing in their statement is questionable, but the question remains: the markets on Monday morning, they find in this effort of reason to trust al’Europe?
The quality of the statement is indisputable, but did reach a sufficiently concrete? Something Will it change that allows to believe that stability? Asking the question answers itself.
The call for financial regulation is pathetic. This week has u agreement between Democrats and Republicans on the financial reform in the United States. The 1,300 pages of this document are not a guarantee of high efficiency, but it exists, and it will be passed soon. In Europe, it does not, and when it will be proposed at least 18 months to put th application. It is also 18 months since the first summit of the G20 proclaimed the same thing: what has Europe done in this area for a year and a half? Where are the drafts? New structures are without power: the action is reserved for national supervisory authorities.
The President of the European Council in June will present a report on measures to reduce speculation in government bonds: What is it? Are there any specific sites? Credit Default Swaps (CDS)? The rating of sovereign debt? The organization of the bond markets? The transparency of information?
The impression that emerges from this statement is a form of fatigue government leaders. They are in Brussels for a summit or another every week. Yet their countries to manage public finance problems, problems of unemployment and social reforms under construction. The time is not it time to act in concert with the United States and can be coordinated financial reforms rather than reinventing the wire sliced bread?
As for the management of crises, one wonders if it will be the responsibility of the Commission, the Eurozone or the European Central Bank. Will it be a permanent structure? He does one allocate resources to intervene in markets or on recalcitrant states?
Greece will finally receive a substantial assistance. Even the German and Greek parliaments had approved, with necessary reform measures. To late it is, this intervention should reduce the pressure in global markets sour.
Because the crisis has now taken on global proportions. It will be difficult to reduce in perspective: a problem of indebtedness of a small country in the Eurozone. Was it to jeopardize the confidence in the European currency?