The world markets expected concrete steps from Washington over the weekend on how governments would resolve the European crisis. They did not get it. Instead, they were told that the “Euro-area countries will do whatever is necessary to resolve the euro-area sovereign debt crisis”. Unfortunately, this statement seems to be based more on hope and prayer than on evidence.
We now have to recognise that the eurozone’s problems are too big to leave to eurzone countries alone to deal with. The world has a stake in their resolution. And it has an institution that can channel help, the IMF. It is high time the fund started taking the lead in managing the crisis, rather than playing second fiddle. The eurozone should suppress any wounded pride, and not only acknowledge that it needs help but also provide quickly what it has already promised. The rest of the world should pitch in recognising that, unresolved, the crisis will spare no one. Continue reading »