欧州首脳会議 危機対策に市場の目は厳しい

The Yomiuri Shimbun (Oct. 26, 2011)
Investors not fully reassured by moves to settle Greek crisis
欧州首脳会議 危機対策に市場の目は厳しい(10月25日付・読売社説)

Leaders of eurozone nations have moved a step closer to settling the region's financial crisis after reaching a broad agreement on a set of measures to prevent the crisis from spreading further--although their actions were slow and taken reluctantly.

However, the leaders still face a long, winding road to conquer the crisis and dispel the market's anxiety.

It is necessary for them to work on the details of issues left unresolved and act promptly in dealing with the crisis.

At the recent summit meeting, leaders of the European Union and 17 eurozone countries discussed measures to settle the debt crisis of Greece, the nation where the trouble first broke out before spilling over to other European nations, as well as measures to prevent the crisis from spreading to still more countries.

After difficult negotiations, the countries have drawn up some remedies.


'Managed default'

The measures have three pillars: bank recapitalization, significant reduction of Greece's debt burden and reinforcement of the European Financial Stability Facility (EFSF).

The eurozone leaders have decided to ask banks that own Greek government bonds for a recapitalization of more than 100 billion euros (about 10.5 trillion yen), which seems to be appropriate for the time being.

At the same time, the leaders will ask banks to bear further burdens to relieve Greece's debt problems, such as giving up 50 percent to 60 percent of the Greek government bond principal they have.

This measure is a de facto approval of Greece making a virtual default on its debts to some degree, as it is now apparent that the country lacks the ability to repay.

In July, eurozone monetary authorities announced results of stress tests on major eurozone banks, but the assessment was too lenient.

One particular problem is that the tests failed to check deterioration of bank assets caused by the rapid price fall of Greek government bonds.

This time, bank recapitalization will be conducted to prepare for debt relief for the Greek government and the expected further price fall of the country's bonds--a process that seems like a "managed default."

We hope the measures will contribute to preventing markets from panicking and to stabilizing the financial system.


Investors still skeptical

It will be an encouraging message to the investment market that eurozone leaders have agreed to strengthen the EFSF, an institution that supports eurozone nations marred by fiscal deficits, and to move forward the launch of the European Stability Mechanism, envisaged as a European version of the International Monetary Fund.

However, as the Greek crisis has already triggered credit uncertainty regarding Italian and Spanish bonds, it is unclear whether the measures agreed by eurozone leaders will be enough to deal with the financial crisis.

Market players still worry that the amount of bank recapitalization is too small.

The process of recapitalization also remains unclear, and it is uncertain whether the banks would agree to the significant reduction of Greece's debt burden.

If eurozone leaders decide to ask for the financial help of the IMF to strengthen the EFSF, it will provoke angry responses from Japan, the United States and emerging economies that want the eurozone nations to step up their self-help efforts to deal with the financial crisis.

Market players are looking with icy disapproval at the eurozone nations, whose measures against the financial crisis have always been one step behind.

Eurozone leaders need to specify the details of the agreed measures against the crisis at the next summit meeting Wednesday and present the details at the Group of 20 summit meeting of major economies scheduled early next month.

(From The Yomiuri Shimbun, Oct. 25, 2011)
(2011年10月25日01時05分 読売新聞)

by kiyoshimat | 2011-10-27 06:55 | 英字新聞

<< 原発と自治体―次の道を考えるときだ 日仏共同宣言 原発の安全向上へ... >>