The EU summit is over. The eurozone crisis seems to have reached its climax and the situation starts improving. However, the major threats are still coming from the South:
• Greece still may default on its debt if there is no aid until March.
• Spain may fall into recession.
• Portugal may also need further financial support from the IMF.
• Italy has accumulated a huge public debt.
• France is deprived of its highest credit rating.
The summit ended up with a number of major decisions:
• The participants signed an agreement to create the European Stability Mechanism (ESM), a permanent rescue funding program to succeed the EFSF. It will take effect on July 1st 2012.
• All the EU states, except the UK and Czech Republic, agreed to accept a fiscal pact. It will be signed in March.
• They approved the concept of stimulating economic growth and employment.
In the meantime, EURUSD is about to resume its rally in the form of wave 5 H1. According to the SDR Department of , the price will probably make a new local high.
