Why EU's €750bn rescue package is merely a stopgap for indebted nations
For the deal to be effective, it would need to be accompanied by major fiscal reforms, writes Willie O'Dea
I DON'T know Jim O'Neill, chief economist of Goldman Sachs. Therefore I cannot accuse him of being prone to exaggeration or hyperbole.
However, I have to confess to some surprise at his use of the phrase "shock and awe" to describe the recent European finance ministers' package to stabilise the euro. I'm sorry to have to admit it but I'm not that shocked and I remain decidedly under-awed.
It was not until the US authorities promised to stand behind the entire financial system with as many dollars as it would take that they eventually succeeded in halting the banking crises in the US. Will €750bn do it for Europe? I remain unconvinced.