The fond wish of markets is that the ECB will act once Europe’s leaders have sketched a “road map” for fiscal union at this month’s summit. But it will disappoint.
Token bond purchases by the ECB will not help at this late stage. Half measures will accelerate the crisis by pushing other creditors down the ladder.
It will require monetary stimulus on a crushing scale to restore confidence, and arguably a pledge to do whatever it takes to cap real Italian and Spanish bond yields at 3pc.