The fiscal side of the EU is stating that they have done their part to solve the debt crisis. We have heard that before, but the burden now seems to be shifting to the ECB to take more action. The ECB has lowered rates and have offered some extra liquidity provisions. This may continue over the coming weeks as the central bank determines the market reaction to any sovereign debt deal.
It seems as though the ECB does not want to be dragged in to a solvency policy and will continue to behave like a lender of last resort. All of this makes sense. To early a provider of liquidity will not force other contingencies to develop; however, the current difficult situation of European banks is still growing and being too late to adapt monetary policies could actually be the ruin of the euro.
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