Top officials, including the finance ministers of the G7, have called an emergency meeting over the European sovereign debt crisis. Observers wonder whether these ministers can succeed where the European Union, European Central Bank and International Monetary Fund have already failed.
The special focus will be on Spain. It is deemed by some to be “too big to fail” because a bailout could strain the fund created by the region’s governments to aid nations with overwhelming deficits and high borrowing costs.
The White House press secretary said ahead of the meeting: “Markets remain skeptical that the measures taken thus far are sufficient to secure the recovery in Europe and remove the risk that the crisis will deepen.” But Treasury Secretary Tim Geithner already has visited the region several times and tried to both beat and shame the EU nations to do more to fix the financial problems of its weakest countries.
One more meeting is unlikely to offer a ready solution.
Douglas A. McIntyre