European leaders are struggling to overcome a crisis-fighting stalemate as they face discord over a banking union, Greeceâ€™s ongoing debate on how to meet bailout commitments and foot-dragging by Spain and Italy on financial aid requests.
Chancellor Angela Merkel and President Francois Hollande underlined Franco-German disagreement over the weekend as they clashed on a timetable to introduce joint oversight of the regionâ€™s banking sector, with Merkel rebuffing Hollandeâ€™s appeal to activate it â€œthe earlier, the better.â€
Enlarge image European Leaders Struggle to Overcome New Crisis Stalemate
German Chancellor Angela Merkel, right, and French President Francois Hollande attend a press conference at Ludwigsburg Palace on Saturday.
Financial markets â€œthat are watching Europe want to see results,â€ Merkel said at the meeting on Sept. 22 near Ludwigsburg, Germany, celebrating the two nationsâ€™ reconciliation after World War II. Still, â€œit has to be thorough, the quality has to be good and then weâ€™ll see how long it takes,â€ she said.
Markets that surged this month on the back of a European Central Bank rescue plan and clarity over bailout funding may not offer European leaders the time they need as an easing in market pressure raises the risk of policy complacency. Deadlock over the banking union could delay until next year a key building block in resolving the crisis, compounding turmoil thatâ€™s so far engulfed five of the euro areaâ€™s 17 nations.
Via – Bloomberg
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