The volatility and market turmoil that accompanied the 2011 realization that the euro could conceivably come apart is unlikely to be fully dispelled. Instead, top politicians and policy makers appear likely to continue relying on the potential for imminent disaster to push through otherwise politically unpalatable changes, economists said.
After all, it was Europe’s most powerful politician, German Chancellor Angela Merkel, who warned Germany’s parliament earlier this month that the crisis would never be solved in one fell swoop. Instead, she likened the process to a marathon, and hinted that the runners had barely cleared the starting line.
Indeed, the recent agreement between nearly all EU members to move forward with closer fiscal and economic links is likely to take months or even years to come to fruition, all but ensuring uncertainty and volatility remain a staple of European markets and politics.
