Another week, another attempt to rescue Euro zone debt deal
European markets opened on an up and down note on Monday, indicating that Standard & Poor’s downgrades would be taken in stride. However, European leaders found themselves (again) floundering to rescue their own rescue plan.
Leaders are under pressure to move discussions forward before the January 30 meeting of the European Central Bank reports Bloomberg News. Signs, however, were not positive as French officials indicated that talks between French President Nicolas Sarkozy and German Chancellor Angela Merkel may be delayed due to scheduling conflicts.
Even if talks do progress, some analysts portend a further deepening of the crisis.
“While the market impact of the downgrades is unlikely to be very significant in the short-term, they serve as a stark reminder that the euro area sovereign debt crisis is here to stay,” said Royal Bank of Scotland Group Plc economist Jacques Cailloux. “We continue to expect the crisis to deepen.”