The odds of even modest success at the European summit that begins on Thursday look worse and worse

06/25/2012 12:10 pm EST


Jim Jubak

Founder and Editor,

Stock markets keep lowering the bar for results from Thursday and Friday’s summit of European leaders. At some point, stock prices will have retreated enough so that even vague promises might lead stocks higher. Although after today’s performance by German Chancellor Angela Merkel, it’s not clear that the summit will be able to produce even vague promises.

Here’s what Merkel said today in Berlin: Euro bonds, euro bills and joint European deposit insurance are “economically wrong and counterproductive.” What’s more, Merkel added, they ran against the German constitution.

“It’s not a bold prediction to say that in Brussels most eyes -- all eyes -- will be on Germany yet again,” Merkel said. “I say quite openly: when I think of the summit on Thursday I’m concerned that once again the discussion will be far too much about all kinds of ideas for joint liability and far too little about improved oversight and structural measures.”

It sure sounds like the summit could go down in flames. In which case I don’t think the stock market has yet set the bar low enough.


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