EU Summit, leaders made meaningful progress on fiscal integration ::Edelweiss

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In the EU Summit, leaders made meaningful progress on fiscal integration (though still far from “fiscal union” and hence a Eurobond).  However, unless these measures are accompanied by ECB enhancing its role significantly, it will not materially alter the debt crisis situation in the near-term. If anything, too much stress on fiscal austerity without growth boosting measures could worsen the debt dynamics. Moreover, the Summit failed to achieve much except for the probable increase in the fire power of IMF by ~ EUR200bn (through loans from member states) but that too is a small amount given the size of the problem. Overall, a good show of resolve to deepen the Union but not much to address the escalating debt crisis.