'Whatever it takes?!’
‘Whatever it takes’. Those are the words the German Chancellor Angela Merkel has consistently espoused when talking about the support Germany is willing to offer to preserve the Euro. It would now seem that this phrase needs qualification. Germany will do ‘whatever it takes, apart from the things that will work!’
We have written earlier this year about the difficulties politicians and policy makers alike have found in solving the Eurozone problems given their scale and scope and the political capital at stake. Each rescue package so far adopted has seen unwillingness by politicians to grasp the nettle and make sacrifices to resolve a problem that could potentially put the world economy into prolonged recession. This continuous lack of leadership has made the patient very sick and the required medicine to cure the problem is urgently needed.
Markets have become impatient and the current summit of the EU members in Brussels had been billed as the last chance to provide a final, definitive Eurozone rescue plan to end the turmoil. Disappointingly, this meeting again appears to be a damp squib with the resolutions due to be announced on Wednesday 26 October (today) looking like they will be postponed or at best be a watered down announcement lacking the detail markets are looking for.
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