Europe: Many challenges remain

The plan calls for a "decisive" response to the debt crisis in Greece; enhanced financial "backstops" for other troubled euro area nations; recapitalization of European banks; fast tracking policies to boost economic growth; and more robust governance measures. While the details remain sketchy, European leaders have pledged to present a more definitive version of the plan at a meeting of the Group of 20 world economic powers in November. The promise of a coordinated and multifaceted approach to the nearly two-year-old crisis has boosted morale in global financial markets, where investors have been clamoring for EU leaders to get ahead of the curve. "Assuming all goes according to plan, this may mark the end of the beginning of the sovereign debt crisis," said Alastair Newton, fixed-income strategist at Nomura Securities in London.

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Europe: Many challenges remain

The plan calls for a “decisive” response to the debt crisis in Greece; enhanced financial “backstops” for other troubled euro area nations; recapitalization of European banks; fast tracking policies to boost economic growth; and more robust governance measures.

While the details remain sketchy, European leaders have pledged to present a more definitive version of the plan at a meeting of the Group of 20 world economic powers in November.

The promise of a coordinated and multifaceted approach to the nearly two-year-old crisis has boosted morale in global financial markets, where investors have been clamoring for EU leaders to get ahead of the curve.

“Assuming all goes according to plan, this may mark the end of the beginning of the sovereign debt crisis,” said Alastair Newton, fixed-income strategist at Nomura Securities in London.