Over the 14 ½ Summits of the European leadership since the beginning of the Greek crisis, very little has been actually decided, let alone implemented. In order to avoid a further and catastrophic deterioration of the precarious situation of its public finance, action must be the absolute priority.
Last week, arguments about the role of the European Central Bank and the possible issuance of euro-bonds guaranteed jointly and severally by the Members of the European Union, occupied the communication space. Frau Angela Merkel, supported by the new ECB President, Signor Mario Draghi, refused the French proposal of Monsieur Nicolas Sarkozy to ask the ECB to purchase more sovereign bonds from the ailing Eurozone countries. They were right. The ECB must remain the Central Bank of the Eurozone, and the other Funds will take care of the sovereign debt.
What kind of actions are we talking about?
The combination of these actions should have immediate results on the indebtedness and the refinancing needs of some of the most fragile economies. What markets expect is to see, are concrete improvements to the situation. Political declarations have become useless.
Every summit was followed by some hope, while the markets realized that they were not realistically implementable. Now is the true test of statesmanship and cohesion. There is little hope if it is not successfully passed.
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