European Union leaders may have bought the euro some time but they haven’t brought it a solution.
The single currency may well have a comfortable summer. After many months of market tension, politicians as well as markets players will be only too glad to head for the beaches now that a second bail out for Greece has finally been negotiated.
But, come the autumn, the real test of the €159 billion bailout that the leaders have just cobbled together for Greece will take place.
The details of private sector involvement, the reaction of credit rating agencies, the impact on the borrowing costs of other peripheral euro zone debtors should all be a lot clearer by then.
And investors will probably not like what they see.
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