The latest EU agreement has disappointed and fallen short of expectations, failing to convince markets of the presence of any credible plans to tackle the Euro-crisis. Though the EU members agreed on measures in the first half of December, intended to communicate to the financial markets that they are working towards the goal of a common fiscal union, it remains to be seen if the latter will work out in practice. While markets are not likely to test the resolve of the ECB and the EU until the beginning of 2012, evolving market reactions including the dip in performance point to continued tension and unresolved anxieties. Read More
