The upcoming parleys in Brussels later today followed by the summit level Meeting of EZ leaders tomorrow continues to cast a shadow over Global Markets. Most Market pundits seem optimistic but then there are the regular naysayers as well who are more circumspect. Even as France has sounded more detrmined to enable a powerful resolution, reports suggest that German officials are rather sceptical over the success of the Franco-German initiative to recast the entire EU Treaty to reflect the need for greater budgetary discipline. Yet other Reports seem to suggest that the German pessimism is nothing but a ploy to nudge the Member States out of their ostrich-like demeanour and make them more amenable to finally accept tighter fiscal and monetary discipline.
In any case, Friday's summit , being touted as a possible gamechanger by many, is very likely to determine the direction of Global Markets at least in the short to medium term. The absolute necessity of the 'Merkozy' initiative to positively reshape the EU Treaty is further underlined by latest data released yesterday that shows the enormity of the problems that some European Banks are facing. This coupled with the latest Standard's And Poor warning that it could cut Credit ratings across the entire EZ has indeed set up the entire concert as a bit of a financial humdinger.
What remains to be seen is indeed whether the Knight in shining armour does get to rescue the proverbial damsel in distress this time around.
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