In addition, the announced losses have been very large, and came as a bit of a shock to the market at a time when the State’s finances were already under pressure and with heightened market sensitivity to Sovereign debt issues in the euro area.
A faster and deeper implementation of the existing approach, as agreed under the EU-IMF Programme, is clearly the way to go. The funders’ single-mindedness on this point will help overcome hesitation and accelerate the making of hard choices.