Eurozone reaction - A crisis of uncertainty

THE degree of uncertainty surrounding the latest bid to resolve the problems besetting the eurozone is perhaps the most worrying aspect of a crisis that will not go away.

There is uncertainty on whether or not a referendum will have to be held in Ireland.

The future involvement of Britain following its veto of the crucial vote at the Brussels summit is also unclear.

The only issue of certainty will be seen when the world’s financial markets open this morning.

Their reaction, coupled with the anticipated credit rating by Standard and Poor’s, will affect the future of the agreement.

Arguably the most effective way to bring the crisis to a head is for the ECB to play a role more aggressive than providing liquidity for commercial banks.

Unless the ground rules are changed, enabling it to buy the bonds of debt-ridden countries, the fiscal crisis will get deeper, with catastrophic repercussions for Europe and the global economy.