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The Editors

Dithering European Leaders Are Defaulting to the ECB: View

If this summer has shown us anything, it is this: Europe’s leaders are unwilling, unprepared or unable to take the necessary measures to solve the continent’s financial crisis. More and more, it seems, the well-being of world markets rests with the European Central Bank.

The latest developments in Greece, where a bailout package adopted in July is threatening to fall apart, make clear the danger of the piecemeal solutions that have been deployed so far. Austerity measures are deepening the Greek recession, lessening the government’s chances of paying its debts. European stocks are gyrating, and Italian bond yields have been rising again as investors worry that the trouble could spread to banks and larger governments. Meanwhile, European voters are wearying of failed bailouts, eroding the already limited ability of elected leaders to solve the euro area’s problems.