Upcoming weeks will be decisive for the European debt crisis. The Old Continent?s lumbering machinery should gain momentum toward a decision prior to the next G-20 summit on November 3 and 4. In light of a lot of misspent time (paradoxically, by trying to spend it wisely) and the Babelesque negotiation efforts, freeing Greece from their debts will require a Herculean effort.
Tomorrow, prominent EU leaders will address common goals. Germany still has not set a date to vote on critical aspects such as whether to approve the second Greek recovery plan or a more permanent plan to put into place starting in 2013. With respect to the current recovery fund, today we see how a country with as little representation as Slovakia could create a major hurdle upon being trampled by internal political trickery inside its backing of terms agreed to during the July summit.
The issue is what gives hope to the faction that wants to break up unanimity in decision-making process in the name of a new, common Euro that better supports the nations that use it. Also pending: details of terms and flexibility of the recovery fund, letting loose a second 8 billion euro Greek recovery fund and the banks recapitalization need. The latter topic means open season for some bitter responses such as defining losses by their amount, impact, costs and terms.
An obstacle course of maximum difficulty and less than a month for leaders who in less than a year have not been able to build consensus. Can a slow long-distance runner win a world-class sprinting event? Not so easily.
