The euro area is working on a response to the problems of Greece, but we can expect that a focus on sovereign risk will be a feature for some time yet. Periodic surges in concern are likely to be a recurring theme, and not just about the sovereigns themselves but about banks that might have exposures to them.
A credible path needs to be outlined for fiscal consolidation and debt stabilisation in the North Atlantic economies over the years ahead. In the meantime, banks in the countries with weak economies are absorbing the normal sorts of losses associated with recessions.