The truce given by financial markets on Thursday to European leaders has disappeared. Economic Indicators suggest that investors still in high alert and will not rely on the plan created by the leaders of the euro zone. At the end, financial markets don´t buy the story that this solution is for Greece, only for Greece and just for Greece.
In fact, it identifies a clear risk that Ireland could suffer a restructuring similar to Greece. The eyes are also set over the big countries in trouble in trouble like Italy and Spain.
Chancellor Merkel does not lower her guard and warns that Italy should impose deeper austerity measures. Merkel´s ideas connect with the thinking of Popular´s Party leader, Mariano Rajoy.
Although the strategy formulated by the European leaders on Thusday is reasonable, the truth is that there is a no arbitration mechanism to avoid any spread of the crisis to any other EU country. The UE leaders have been too concentrated in a Greek default, instead of assuming that Greece is effectively bankrupt and look forward to stop contagion.
