Euro Zone countries are waving promises to leave the union. The recent summit meeting of leaders of France, Germany, Italy, and Spain showed their intent to back financing of infrastructure projects. However, these promises have to stay on solid timetable and concrete action otherwise no progress will be possible. Stricken countries like Greece and Spain will be under even a higher risk in case Europe fails to take immediate actions.
Summits of this kind tend to provide the world with nothing but expectations they fail to meet, experts say. However, Euro Zone hopes this time it will be different. Leaders have planned to bring the economics together, creating a system of backstopping each other’s banks and bonds and policing each another’s spending. Euro Zone countries are urged by the European Central Bank and International Monetary Fund to create a banking union to ensure stronger measures to prevent bank runs. By now the summit meeting yielded an agreement upon a growth pact, providing overall 130 billion Euro credit to private companies.
The stumbling block in working out common positions is that there is fundamental break between the northern counties, led by Germany and France’s allies on south, like Italy and Spain. In many ways the personal relationships and cooperation of European leaders leads to the overall success. Chancellor Angela Merkel – the staunchest advocate of austerity in Euro Zone had established fruitful cooperation with France’s ex-president Nicolas Sarkozy; now, she is to create at least a working relationship with the elected president François Hollande.