What to expect for the upcoming EU summit?

Chong Dahai, Xinhua, 07.12.2011

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Discussion of changes to the European Union treaty to forge closer fiscal union may be at the focus during a summit meeting of European leaders in Brussels on Thursday and Friday. […]

A report co-authored by Janis A. Emmanouilidis and Fabian Zuleeg, two senior researchers of European Policy Center, a Brussels-based thinktank, also warned that the upcoming days and weeks would determine future of euro, as well as the whole European project.

"The implosion of the euro area would provoke an unprecedented nightmare for the EU and its members: with horrendous financial, economic, social and political consequences," the report said. […]

Both Janis A. Emmanouilidis and Fabian Zuleeg support the idea of using ECB as a temporary lender of last resort, at least until some permanent arrangements are at place. But they also warned that this might increase inflation risks. […]

For the entire article see here.


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