- Delaying adjustment to fiscal targets is risky, would increase debt-to-GDP ratio in 2020 to above target and requires additional funding
- New Greek government’s first priority must be to get programme back on track, policy implementation has “virtually stalled” over past 3 months
- Restoring confidence for euro area bigger challenge than resolving Greek crisis
- Euro area needs to send clear message that it has understood design flaws and has a plan to correct them
- Spain can restore confidence with recapitalisation plan that removes all doubts about its banks’ solvency
- For Ireland and Portugal, restoring confidence means maintaining strong track record of implementation
- Those who advocate “once and for all solution” like a banking license for the ESM, a European transfer system or the like are seeing only a superficial analysis
EUR/USD sits at 1.2623, effectively unchanged on the day. Must be Monday
