DAVOS, Switzerland, Jan 25 (Reuters) – There is a
palpable sense of hope at the annual Davos World Economic Forum
that the euro zone is edging away from the brink of catastrophe
but business leaders say Europe’s woes are still holding back a
A growth strategy is the missing ingredient in the policy
cocktail that euro zone leaders are mixing to save the currency
bloc from break-up. Without economic recovery, re-election will
be tough for presidents in Europe and beyond this year.
The 2,600 political and business leaders attending the
five-day Davos Forum meet against a backdrop of improved market
sentiment driven by signs the euro zone may escape recession and
that intense market pressure on Italy and Spain is easing.
Greece is clinging to hope of a bond swap agreement to avoid
a starker default, although an agreement is far from assured.
But markets seem relatively unconcerned at the prospect of an
enforced Greek default, seeing the problem increasingly as a
one-off event divorced from developments elsewhere in the euro
“There is an increasing sense that Greece is different from
the others and that the contagion elsewhere could be contained,”
Giles Keating, head of private banking research at Credit
Suisse, said ahead of the Forum’s first full day on Wednesday.