Eurozone: An elusive debt resolution

Major analysis feature. The quest for a second Greek bail-out is beset by conflict and confusion during the summer of 2011 says the writer.

European leaders have been drawn into one of the most agonised debates seen since the eurozone debt crisis erupted in 2009. It has sowed confusion in financial markets and pushed borrowing costs for the third- and fourth-largest eurozone economies – Italy and Spain – to 6%, levels some analysts believe are not sustainable.

The conflicting problems are compounded by conflicting institutions. Almost every participant in the debate – the Greek government, the European Central Bank, the IMF, the European Commission and national capitals – holds different and sometimes mutually exclusive interests.

ESO: Background information: EU must take ‘bold’ decisions on crisis / Talks focus on Greek debt http://www.europeansources.info/record/eu-must-take-bold-decisions-on-crisis-talks-focus-on-greek-debt-bank-tax-proposed-to-help-greece-bail-out-barroso-warns-of-greece-shockwaves-germany-and-france-reach-greek-ac/

Wikipedia: European sovereign debt crisis http://en.wikipedia.org/wiki/European_sovereign_debt_crisis

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