EU fumbling leaves eurozone seeking credibility

"The problem here is the recurring inability in the European project to say brutal truths honestly and clearly and act on them in a realistic manner," said Hugo Brady, a senior research fellow at the CER. "The markets aren't stupid. They aren't going to be fooled by elaborate peacocking displays. They can see when reactions are credible and when they are not. Anyone could see Greece was going to need bailing out in a matter of weeks, and so that dancing around just made it worse... The euro, if you like, is a confidence trick and there is a desire to ignore the fact that it probably wasn't an ideal currency union," said Brady, although he does not think the currency or the monetary union will fall apart. "We're defining what sort of area the eurozone is right now ... It's really kill or cure."