The European crisis seen by the European politicians

Inviato il 15 November 2011 da Forex Staff

After the last increases of the euro, Dopo gli ultimi rialzi della nostra valuta, there are those who think that we can have maybe two or three days of calm, but nothing has really changed. Spain, for example, has stopped growing in the third quarter, creating doubts about its deficit reduction targets.

The European leaders are still in crisis on how to face the deep crisis. The pression grows on the European Central Bank in order to make it act forcefully.  According to many, the ECB will become a complete provider of last resort, like the Federal Reserve and the Bank of England. According to the British prime minister, Cameron, there is turbulence in the markets and the real question is whether countries are able to deal with their debts.

Russian Prime Minister Vladimir Putin has expressed doubts that Europe can have the strength necessary to avoid the catastrophe of an Italian collapse. Russian experts believe that without the direct intervention by the ECB, this problem will be solved. Putin himself said that the EFSF, alone or in collaboration with the IMF, does not have the resources necessary to bring the euro zone out of the crisis.

According to many, it is a complex challenge to increase the EFSF fund, since the political turmoil that has been seen in the last 10 days may reduce the potential for leverage. There are also many doubts that the addition of money to the capacity of the EFSF fund will be able to solve the structural problems that are afflicting the political and the euro area.

Germany, Europe’s largest economy, is strongly opposed by the ECB to take a larger role in this crisis, arguing that it would compromise the independence of the central bank. Papademos, Greek current prime minister and former deputy president of the ECB, in front of the great challenges now facing the leadership of his country, made ??it known that it will take time but you can make it. According to him “with the unity of all people, you will succeed.”

Papademos has about 100 days to begin to meet the terms of the rescue plan that will keep Greece solvent.