Photo: Wikimedia Commons
From Nomura, a quick summary of this weekend’s G20:The G20 told the eurozone that by the European summit next Sunday, 23 October, it should: agree on the losses the private sector should take on Greek debt; arrange a credible plan for the recapitalisation of Europe’s banks; and install a firewall to protect other countries from Greece’s woes. Details of the eurozone package are not expected to emerge before Thursday, when the 17 governments hope to have the full report of the troika on the sustainability of Greek debt. There was some positive news in comments by EU Economic and Monetary Affairs Commissioner, Olli Rehn, suggesting that EU member states are close to an agreement on bank recapitalisation plans. S&P downgraded BNP Paribas on Friday after reviewing the ratings of the five largest French banks. The decision was based on the vulnerability of their funding and liquidity profiles given weaker economic growth in Europe.
Piece of cake, right?
Well, probably not. Even just today, Germany’s Wolfgang Schauble is trying to downplay expectations, talking about the lack of Bazooka, etc.
Watch Below: Can Europe Really Solve All Its Issues By This Weekened?