Quadriga

European heads of government are under pressure, as expectations for the upcoming EU crisis summit run higher than ever before. At stake is nothing more nor less than saving the EU itself. Playing for time, European Council President Herman Van Rompuy even set the summit back a week. European finance ministers were meeting to discuss the proposed financial transaction tax. Rompuy also had to wait for the EU, IMF and ECB inspectors' tri-monthly report on Greece. But it's far from clear whether the extra time gained has been sufficient to find a practical and suitable strategy. The situation is screaming for swift action, as the vast mountains of debt of some EU member states tower ever higher.

A coup de grace that would resolve the crisis and liberate Europe looks unlikely. "But we'd like to make some decent progress in Brussels", German Chancellor Angela Merkel stated optimistically. With views on how to go about any rescue diverging widely, European leaders are facing some tough negotiations. With a Greek default looming ever larger and even beginning to look attractive to some, a concept for relieving Athens' debt needs to be found sooner rather than later. The first item on the summit agenda is a second bailout package, this time involving private banks and insurance companies and including the prospect of a restructuring of Greek debt. Stabilization and mandatory recapitalization of European banks are also high on the agenda. But financial and credit institutes are dead set against any state intervention. A proposal to separate investment banking from retail banking has also gained little enthusiasm.

While European heads of government scramble to find solutions, public anger is growing. Many ordinary taxpayers are unhappy about having to foot the bill for other nations' mismanagement of their economies and the greed of reckless investment bankers. Greece has seen a general strike and mass protests over its government's strict austerity measures. The well-organized and ever-growing Occupy movement is spreading around the globe. Its protests are aimed at banks, credit institutions and speculators. The discontent has taken on a dimension that has many politicians taking it seriously. The crisis managers still have a firm hold on the reins - for now. But Europe may not hold up under current conditions much longer.

What do you think? Crisis Summit - Last Chance for Europe

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