EU Readies Small Steps, and Mulls Big Ones |
| Wall Street Journal - May 22, 2012 |
European leaders meeting on Wednesday are expected to announce limited measures aimed at softening the bite of austerity on the euro zone's troubled economies, but behind closed doors they will wrestle with deeply controversial policies that could overhaul the currency area's faltering economic machinery.
With political crisis in Greece threatening to fray the euro zone, German opposition to these more-ambitious changes will be tested anew by countries with shakier public finances, such as Spain, Italy and France, officials said. Decisions are unlikely at this meeting. Enormous political and technical problems would need to be solved before governments could back major policy overhauls at a crucial summit next month.
But next month's elections in Greece could dramatically change the euro zone's political calculus, analysts say. A victory by parties opposed to the bailout negotiated with the euro zone and the International Monetary Fund would sharply raise the risk of Greece leaving the currency area, and possibly prompt policy makers to adopt more far-reaching measures to contain the turmoil arising from such a threat.
Read Full Article from Wall Street Journal
- Posted: 2012-05-22 14:04:58
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