Management has been changed in response to the actions of the wolf pack. Cries of save the system have bellowed throughout Europe. New Italian and Greek leadership, likely old ideas dressed in new clothing, are certain to embrace austerity as a means to facilitate further bailouts. One would think that public sector austerity within economies largely supported by the public sector would be deemed reckless and foolish. Be certain that the wolf pack recognizes it.
In the end, the movement of capital, investors voting with their feet, is the ultimate force behind change.
Headline: Italy pushes through austerity
(Reuters) - Italy's parliament is rushing through austerity measures demanded by the European Union to avert a euro zone meltdown, after President Barack Obama ratcheted up pressure for more dramatic action from the currency bloc.Source: reuters.com
Italy's Senate approved a new budget law on Friday, clearing the way for approval of the package in the lower house on Saturday and the formation of an emergency government to replace that of Prime Minister Silvio Berlusconi.
Obama spoke with German Chancellor Angela Merkel and French President Nicolas Sarkozy late on Thursday and also called Italian President Giorgio Napolitano, who in turn was due to speak to Sarkozy in a round of telephone diplomacy.
A German government official said there had been an "exchange of opinions" between Merkel and Obama, while Treasury Secretary Timothy Geithner demanded fast action from Europe.
"The crisis in Europe remains the central challenge to global growth. It is crucial that Europe move quickly to put in place a strong plan to restore financial stability," Geithner said in a statement following a meeting with finance ministers from the Asia Pacific Economic Cooperation countries.
After months of dither and delay, Rome appears to have got the message as bond markets pushed it to the brink of needing a bailout that the euro zone cannot afford to give.