Goldman: 6 Things We Learned From This Weekend's Meeting In Europe

europe

Photo: Wikimedia Commons

Goldman’s Francesco U. Garzarelli and Huw Pill offer 6 takeaways from this weekend’s emergency meeting in Europe.We summarize:

  • A “Crew Cut” For Greece: Basically, due to deteriorating fundamentals, it’s not certain that big haircuts for bondholders are an inevitability.
  • A larger bank re-cap: The number is now up to 100-110 billion EUR.
  • External support for the EFSF?: There’s definitely chatter about more IMF/SWF/BRIC involvement to leverage the EFSF, which would be viewed as a market positive.
  • Italy Holds The Keys: Italian reforms must happen right away. Berlusconi is already holding emergency cabinet meetings.
  • Towards Treaty Changes: There’s some nascent movement to treaty changes that would see more fiscal integration.
  • Redistributing Growth: Plans are underway for new schemes, likely via the European Investment Bank, to boost growth in the periphery.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.