There are no easy or automatic solutions, but to date policy responses have been incomplete and irresolute. This has led to a loss of confidence and a lack of trust. It is not just the markets that have lost confidence, it is the ordinary people behind the statistics.
And as austerity programmes bite further, we are likely to see more scenes similar to those that were recently played out in London and Athens. The challenge for leadership is to rebuild this trust and confidence. It can’t be through more talk. There has to be action, but the room for action is limited.