Seamus Coffey: A huge shift at EU summit, but the devil will be in the detail
ANOTHER EU summit has passed but the reaction on this occasion has been one of gushing achievement from several of the leaders who have spoken in its aftermath. While there does appear to have been some significant shifts in attitude, the detail of what has been agreed is still unknown.
The statement released by the European leaders is incredibly short and contains just four paragraphs. It will take more than 300 words to end the eurozone crisis but what was agreed at four o’clock on Friday morning may be the first step into the conclusion of the crisis. The statement has a strong opening and leads with the “imperative to break the vicious circle between banks and sovereigns”.
The detrimental link between banks and sovereigns forced Ireland into an EU/IMF bailout and for the past few weeks we have witnessed the start of the same process repeating in Spain. This summit promises to break this circle but we must await to see if it can deliver.