For all the problems facing Europe, the continent’s elected officials have kept a remarkably narrow focus. They have considered just two things, in fact: (1) How to enforce haircuts on the holders of Greek debt, and (2) how to enforce fiscal austerity. Though such matters are important and help for Greece hinges on their resolution, they are nonetheless a relatively small part of Europe’s problems. Until Angela Merkel, Nicholas Sarkozy and other European leaders expand their focus to deal with the fundamentals, markets and investors will show no confidence beyond that evoked by the ECB. Yet, rather than broadening the scope of their concerns, Europe’s leaders have failed even to reach agreement on the narrow goals with which they seem so wonderfully preoccupied.
Ezrati's economic outlook: Europe’s tunnel vision