It is easy to ridicule European politicians for failing to solve the problems while continually claiming to do so. But what about markets, what about the media? Are they really any better than politicians with their rose-tinted glasses?

Barroso should have been careful with his wish that markets “act on fact not on fiction”. If markets actually did that they would never get themselves into a state of ecstasy whenever European leaders proclaim an end to the continent’s crisis. And yet the ensuing relief rally now belongs to the folklore of crisis meetings like press conferences in the dead of night and undiplomatic exchanges between top EU politicians.

Rapturous market reactions are now just as predictable as the political failures that cause them. Last Monday, three days before the results of the summit, I was interviewed on ABC Radio National about my expectations. My answer was quite cynical: “I can predict that the markets will be enthusiastic and celebrate the great settlement and the final solution to the euro crisis. And then, after two days they will look at the fine print and find out that they actually haven’t decided that much after all. It’s a pattern.” This must have been one of my most accurate forecasts yet.

(Dr. Oliver Marc Hartwich)