The bubbling EuroZone debt crisis dampened a gathering of Group of Eight (G-8) leaders hosted by US President Barack Obama at his Camp David retreat, but the 2-day Summit offered no quick fix for the 2-yr-old crisis, it did, however, point up the weakness of the Euro project.
In former European Central Bank (ECB) head Jean-Claude Trichet's view, the EuroZone is now the epicenter of the global economic crisis.
The World economy has been on what is best described as a roller coaster for the last 6 months, in the words of the International Monetary Fund (IMF) chief economist Olivier Blanchard.
This morning, we're going to be spending a lot of time on economic issues. Obviously the EuroZone will be one topic, Mr. Obama said Saturday before kicking off the working sessions of the Summit.
A lot of bad news weighed on investors' confidence in the recent weeks.
Global rating agency Fitch has slashed Greece's rating from B- to CCC, the lowest possible grade for a country that is not in default, on speculation that Greece could leave the EuroArea.
Greece is expected to conduct a 2nd election in June in a bid to resolve the political stalemate after the 6 May national election that produced a legislature divided among supporters and critics of the austerity measures mandated by the Global rescue package.
At issue is whether Greece exits from the EuroZone to escape austerity policies, a once taboo topic that global leaders are not discussing openly.
Experts including IMF chief Christine Lagarde warn of extremely expensive consequences of Greek departure from the currency bloc.
G-8 leaders expressed their strong wish to keep Greece in the EuroZone, saying in a statement that we agree on the importance of a strong and cohesive EuroZone for global stability and recovery, and we affirm our interest in Greece remaining in the EuroZone while respecting its commitments.
The fate of EuroZone is also critical to Mr. Obama's political survival, as he has geared up the reelection bid. A stable, growing European economy is in everybody's best interests, including America's, Mr. Obama told reporters after the G-8 summit concluded Sunday afternoon.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.