Now the next game begins. Even before the ink is dry on a deal to cut Greece’s debt and put up a firewall against financial contagion in Europe, leading economists fear the rescue package may be too little too late to keep Italy out of the crosshairs of financial markets and open the next battle in the struggle to save the euro. (See more reactions to the deal here and here)
“If the market perceives Italy to be a big problem, I’m not sure that the EFSF will be able to solve that problem,” said Rym Ayadi, a senior research fellow and head of the financial institutions and prudential policy unit of the Centre for European Policy Studies in Brussels.
Read full article here: http://blogs.wsj.com/economics/2011/10/27/economists-efsf-not-enough-to-relieve-italy-fears/