由于欧元区领导人有望最终达成一致行动，周一早间欧洲股市延续两年来最大的周涨幅。此轮反弹的中心看来是上周欧洲金融稳定基金（the European Financial Stability Facility）成功扩容至4,400亿欧元（6,110亿美元）的消息。扩容一事花了漫长的3个月时间才获得欧元区所有17个成员国的同意，在此期间市场曾经多次处于崩盘的边缘。
Markets have rallied in the last few weeks amid increased hope that the European debt and banking crisis was nearing an end. Trouble is, the crisis is far from over. The passage of the enlarged euro zone bailout fund last week by all 17 euro zone members is just the first step required to bring any sense of normalcy back to the continental capital markets.
The real hard stuff has yet to be hammered out. European banks still need to be recapitalized, further haircuts are needed on the sovereign debt of the peripheral euro zone nations and the newly enlarged bailout fund needs to get bigger – a lot bigger.
Over the weekend, the finance ministers of the G20, which includes the United States and China, gave Europe until next Sunday to come up with a plan that addresses all of the above concerns in a comprehensive plan. Europeans have accepted the tight deadline, but there still remain deep divisions as to how to resolve these thorny issues. And even if they are successful, there is doubt as to whether such a plan could withstand another round of voting by the bailout-fatigued European populace.
The European crisis has been chugging along for almost two-and-a-half years now without resolution. The market has forced the Europeans to act over that time through a myriad of scares in the bond and equity markets, with the latest flare-up sending stocks tumbling in August and September. But each was met by some short-term fix or promise, which was tantamount to putting a small band-aid over a gushing wound.
The equity markets this morning in Europe extended their greatest weekly gain in the last two years on the hopes that leaders of the euro zone have finally gotten their act together. The centerpiece of this rally appears to be the successful enlargement last week of the European Financial Stability Facility (EFSF) to 440 billion euros ($611 billion). Getting all 17 members to agree to the enlargement took three very long months, in which time the markets were brought to the brink of capitulation on several occasions.
But while enlarging the EFSF was a big step forward to resolving this crisis, it is unfortunately just the first piece needed to complete this complicated economic puzzle. Meeting in Paris over the weekend, the finance ministers and central bank chiefs of the G20 pushed Europe to do much more.
The Greece problem