Last Wednesday, European finance leaders stated that they have put their hopes in an agreement on stronger fiscal union, in an effort to encourage investment and restore confidence in the euro zone.
According to Jacek Rostowski, finance minister of Poland, reassuring investors of the solidity of the region is critical, and so an agreement on new plans by Germany and France must be accompanied by “extremely forceful” measures.
He added that the efforts of six central banks to increase liquidity in European markets is not “of itself sufficient” to resolve any of the problems.
The plan instituted by France and Germany may take years to make an impact, but the hope is that some deals on its content will encourage the ECB and the IMF to help resolve the crisis.
“The feasibility of interventions by both bodies depends on making progress on institutional matters such as moving forward toward fiscal union,” said Mari Monti, Prime Minister of Italy. “The euro summit of next week will be fundamental because further progress has to be achieved on the governance of the euro zone.”