European Commission President Jose Manuel Barroso and German Chancellor Angela Merkel seem to have conflicting ideas about the importance of tomorrow’s summit.Bloomberg reports that speaking with reporters today in Brussels, Barroso said that the situation is very serious and that:
“The minimum we must do tomorrow is to provide clarity on the following: measures to ensure the sustainability of Greek public finances; feasibility and limits of private-sector involvement; scope for more flexible action through the European Financial Stability Facility, the EFSF; repair of the banking sector still needed; and measures to ensure the provision of liquidity to our banking system.”
Sounds like a tall order. Yet German Chancellor Angela Merkel seems to be put a damper on these high hopes.
The Local reports that Merkel said that thinking everything will be fixed in one summit is either “negligent” or reflects a lack of patience, or both:
“The words being used are clear – a large debt restructuring, eurobonds, a transfer union, and lots more. This creates the impression that everything is going to be OK afterwards, that the issue of Greece and the issue of the euro can be put to one side…Thursday will help in this, but further steps will be needed, not one spectacular event solving all problems.”
These conflicting views by Barroso and Merkel may lend support to those who feel there is a crisis of leadership in Europe.
Despite Merkel’s sobering words, markets rallied this morning ahead of tomorrow’s talks.
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