Euro leaders produced some tangible results over the night through extended discussions. They agreed to set up a single banking supervisor to oversee the industry, and this will enable funding from the ESM, which takes pressure off the peripheral countries economies that are struggling to raise cash at reasonable prices. Finance ministers are targeting a meeting on July 9th to enact the agreement, so there is a much more transparent time frame than there has been on a lot of these European measures that have been agreed upon previously. Francois Hollande’s election has really balanced the scale to the benefit of peripheral Europe. France, Italy, and Spain demanded more concrete steps to ease borrowing costs over the short term to keep up the painful budget cuts that are being demanded by Germany. This is a sign that Europe is going in the right direction but of course more will be needed.
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