PRESS REVIEW | 27.10.2011

European press review: The debt crisis is far from over

 

Europe's newspapers share concerns over the debt deal

European editorial writers have largely welcomed the outcome of Wednesday's crucial EU summit. But many have warned that a Greek debt haircut may not be enough to solve Europe's spiraling financial crisis.

 

Eurozone leaders proclaimed a “comprehensive and solid” response to the European debt crisis early on Thursday morning, but Europe's press is reluctant to hail the latest deal. Many warn that more action is needed to control the spiraling debt crisis.

The German daily Süddeutsche Zeitung praises Europe's leaders for coming up with a unified and "comprehensive" rescue package, but warns that many issues still need to be addressed. "Many market experts believe it is too early to proclaim that there has been a breakthrough," Süddeutsche says. "They believe there are simply too many questions left unanswered. The actual contribution of the banks is, for example, still unclear … The European rescue funds' leverage remains incomplete and its success is far from certain."

The left-wing Spanish newspaper El Pais is more damning in its praise of the eurozone leaders' achievements. It writes that contrary to expectations, the EU summit found no sustainable answers to the financial crisis. It suggests that the decision's taken by EU leaders were "lean" given the delicacy of Europe's financial situation. "The biggest danger doesn't come from Greece anymore, it comes from Italy. The likelihood is that the weaknesses of the Berlusconi government will mean that Rome can no longer repay its debts. There are no funds available to rescue Italy."

The liberal Italian newspaper La Stampa also expresses concern over Italy's handling of the financial crisis. It argues that now is the time that Italy should reassert itself in Europe. "Now more than ever, Italy should bring its national sovereignty to the forefront… Italy's weaknesses come from the parliamentary deadlock and its political impotence. Only an injection of courage and a new political mentality can help us out of this crisis and allow us to win back our sovereignty," it says.

As the Italian press bemoans Italy's loss of sovereignty, several European newspapers comment on the influence Germany has wielded over the debt deal. The French conservative daily Le Figaro says that Merkel's insistence that German prosperity depends on the survival of the eurozone and the support she received in parliament proves how committed Germany is to Europe. It highlights, however, that Germany is no longer tarred by the legacy of the Second World War and taking a backseat in European affairs. "As of now, Europe will have to take into account Germany's priorities more than ever - above all budget discipline, which Berlin views as having run out of control in Europe since the Greek crisis."

Zurich's daily Tages- Anzeiger also refers to Germany's position as a key player in eurozone negotiations. It comments on the fact the German chancellor was the only eurozone leader who was obliged to seek parliamentary approval ahead of the EU summit. "While the Arab world experienced its democratic spring, it appears the European Union is trying to push ahead with its own democratic autumn," it says. "How else can we look at the unique process through which the German Chancellor, before one of the most important summits in the EU's history, had to consult her own parliament? This has never happened before."

Compiled by Charlotte Chelsom-Pill
Editor: Nicole Goebel

 

 

dw