Leaders reach agreement in Brussels, but opinions on its impact vary
After two days of late nights and intense negotiations, the European Council announced an agreement to address the debt crisis crippling the economies of Europe. Britain was the only country not to endorse the resolution.
The finance ministers agreed to raise up to $270 billion to be made available to the International Monetary Fund to aid indebted European governments and accelerated the date that a European rescue fund would come into operation. In addition, new rules intended to impose fiscal discipline were adopted.
European markets rose on news of the agreement, while US investors quickly turned their attention away from the debt crisis overseas to upcoming economic data releases and a meeting of the Federal Reserve next week.
So, has the crisis been resolved?
According to CNBC, German Finance Minister Wolfgang Schaeuble took the the pages of a German magazine to express his belief that Europe “will be able to handle the debt crisis in Europe with the agreed, far-reaching measures on institutional reform.”
An editorial in the Irish Times, however contended the summit failed to maket the reforms needed and may signal the end of the post-1945 European order. The Wall Street Journal was not as apocalyptic, but warned that risks remain.
British Prime Minister David Cameron was warmly received by lawmakers in back home, who saw his veto as a stand for British sovereignty, but Cameron’s decision received different reaction in the European press.