The last attempt to put a stop to the spiralling crisis resulted in a deal on July 21st. But that quickly broke down because the private sector did not have enough confidence to become sufficiently involved. This time leaders and financiers are confident the deal will hold.
The President of the European Commission Jose Manuel Barroso said: ‘When I presented the Commission’s roadmap for stability and growth two weeks ago, calling for action in five essential areas, I made it clear that Europe needed to deliver a comprehensive response to the sovereign debt crisis and I believe that now we have a very solid way forward.’
The managing director of the International Monetary Fund, Christine Lagarde, said: ‘There is a very solid PSI – private sector involvement – for Greece. There is a bank recapitalisation programme that is agreed by all members of the European Union. And there is this European Financial Stability Fund that is duly leveraged and which will constitute a good basis from which to strengthen the defence of Europe against contagion. And on top of that, there is a clear political consensus to have a cohesive approach and a better economic and fiscal integration. That is good.’
The outgoing president of the European Central Bank, Jean-Claude Trichet added: ‘I think they have to be fully implemented as you say, as rapidly and effectively as possible. And I have only to say that what counts is the level of confidence.’