Thursday 21st March, 2013
Cyprus Stalemate Shows Dangers of Ad Hoc Crisis Response The crisis surrounding Cyprus brings into focus the costs of policymakers’ “muddling through” approach to the eurozone crisis, Fitch Ratings says. Without greater progress and clarity on the terms of financial and fiscal risk sharing between Euro Area Member States, each sovereign and bank crisis prompts an ad hoc response that exacerbates uncertainty and undermines market confidence and financial stability. However, there are no immediate rating implications for other eurozone sovereigns.
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