The 2011/11/28 at 08:26
More ambitious than the 21 July Greek bailout plan and the EFSF, and innovative for bank recapitalisation, the Brussels summit of 27 October was expected to bring definitive solutions to the EU crisis. Respite was short-lived and the crisis is back in view, with the surprise announcement about the Greek referendum on 31 October. “The latter was only a catalyst, for neither the cancellation of the consultation of the Greeks nor the resignation of Greek PM G. Papandreou have restored calm to the European debt markets,” points out the Banque Leonardo.
On the contrary, speculation has spread to the non-PIGs (Portugal, Ireland, Greece, Spain), Italy and France. The former is vulnerable because of its debt and political instability; the second, weakened by its twin deficits, no longer really deserves its triple A rating, according to many eco-nomists. For them, the EU plan lacks credibility unless appeal to the ECB to curb speculation or to absorb the generalisation of austerity. Banque Leonardo warms: “Europe cannot count on Germany that only knows how to import its growth”. The euro zone seems to be heading towards recession.