Final phase of European debt crisis has arrived

Draghi Says EU Debt Crisis Is in New Phase

By Lorenzo Totaro and Jeffrey Donovan - Jul 13, 2011

Europe’s debt crisis has entered a new phase and policy makers must come up with a “clear”response to stop the contagion that threatens the region’s single currency, said the European Central Bank’s incoming President Mario Draghi.
“It’s now necessary for those trying to manage the sovereign crisis to give certainty, to define with clarity the political objectives, the scope of the instruments and the amount of resources available,” Draghi said today in a speech in Rome. “It’s a necessary step to ensure the stability of the euro area and its currency.”
European governments can no longer count on their financing costs remaining similar to those of Germany, the region’s strongest economy, simply because of their participation in the single currency, he said.
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