Reading the official documents from the June 28 Summit, writes Charles Wyplosz, Professor of Geneva’s International Economics at the Graduate Institute, requires linguistic and divination skills. The texts are convoluted and clearly aim at giving various positive impressions while shying away from deep commitments.
Professor Wyplosz’s conclusion is that useful progress was made, but this was far from the decisive turn-around that many had hoped for. The crisis will continue to unfold in the months ahead.
At the end of the day, the Summit was a little move in the right direction bank supervision, but keep watching; we still don’t know what will actually get put in place. There was nothing on collapsing Greece, nothing on unsustainable public debts in several countries, no end in sight to recession in an increasing number of countries.