Is Europe NOT in sync with EU treaty change?

Despite repeated assurance from Angela Markel, German chancellor, tension over change in EU deal is brewing up in euro zone. So far, Markel has succeeded in securing agreement from 26 member EU nations. But there are still four nations who have to give their consent to the deal. They have taken time to reconsider the wider implications of the treaty change vis-à-vis their respective countries. Governments of the four states that include Hungary, Denmark, the Czech Republic and Finland are currently going over the details of the treaty with their parliaments before making their decision final. Britain has already withdrawn from the proposed EU pact.

Markets on Wednesday have reacted negatively despite Europe’s brave claim to present ‘fiscal union.’ For the first time since January this year, Wednesday saw Euro hit a record low, below $1.30. This has further spiked up the rate of Italian government bonds, which would mean further increase in borrowing cost for the Italian government already spiraling under debt crisis.

The European Central Bank is facing increased pressure from euro zone nations, reeling under debt crisis, to step in and buy their sovereign bonds. But the head of the central bank of Germany, Jens Weidmann, has rebuffed their attempts to misuse European Central Bank’s fund in this way. Weidmann further stated that instead of looking up to European Central Bank for help, nations should step up reform measures to address their fiscal deficit.

Angela Merkel is optimistic that the new Euro deal would be ready by March. But what the world really wants to know is whether the new deal has what it takes to address the financial crisis of euro zone? Secondly, even if Europe manages to come out of the crisis, will it ever be the same again?