Deutsche Bank AG Chief Economist Thomas Mayer said that European Union leaders meeting in Brussels need to present investors with a “well-thought-through plan” detailing the euro region’s future.
“It is absolutely essential now for the officials to present a well-thought-through plan for where we’re going to go with the EMU,” Mayer told Erik Schatzker on Bloomberg Television’s “Inside Track” today. “I do believe that if you really map out your intentions, explain clearly what you want to do, then you can ease the market tensions.”
EU leaders start a two-day summit today to discuss how to contain the debt contagion that threatens the euro, and agree on a permanent crisis-fighting system. German Chancellor Angela Merkel has balked at boosting or making more flexible use of the EU’s 750 billion-euro ($994 billion) emergency fund.
“‘The Germans are willing to go a great length to help the euro survive amid the onslaught of the markets,” Mayer said. “Germany can make concessions as long as the nature and character of monetary union as a limited liability society is maintained.”