After months at the forefront of crisis management, the European Commission held its last meeting before the summer break on Wednesday – and it seems the European Council is already asleep after a long year of European summits.
However, pressing problems will not disappear just because Brussels will be taking a break.
European leaders might have to interrupt their holidays. Already there is speculation about an emergency summit in August.
Countries like Spain are still in dire straits and the single currency crisis continues.
For Spain everything depends on Thursday’s meeting of the European Central Bank’s governing council.
If the ECB starts buying Spanish bonds, Spain could have a calm summer. If not, the possibility of an emergency summit becomes more likely.
It is a different situation for Italy. Unlike Rome, Madrid is dealing with a severe banking crisis. Instead, Italy could be facing political turbulence with support for technocrat Prime Minister Mario Monti falling.
Speculation about early elections in November is growing, and if that happens, Italy’s borrowing costs would rise again.
Things are not looking up for Greece either. Athens has a 3.1 billion euro bond payment due on August 20 – supposed to be paid with money from the next bailout instalment.
Those much-needed funds will not be given to Greece until September. So it remains to be seen how bond payments will be made.
In Close Up, euronews spoke to Stefano Micossi, an economist and Director General of think tank Assonime, about how the situation could change while Brussels takes a break.