by Paul Hannon
Wall Street Journal
July 27, 2011
Another summit, another deal, another disappointment.
The euro zone's struggle to get to grips with its fiscal crisis grinds on, each failure edging more of its members toward the threshold three have already crossed.
The initial reaction to the new funding package for Greece agreed by the 17 euro-zone leaders last week was one of relief, since any deal was considered to be better than no deal, and expectations of its substance hadn't been high.
But as the days have passed, investors have taken an increasingly jaundiced view of the agreement, so much so that the Spanish government is once again paying more than 6% to borrow for 10 years, or just below the level at which the governments of Greece, Ireland and Portugal were forced to seek help.
So, unless there is a major change in sentiment because of developments elsewhere—across the Atlantic, for example—Europe's leaders will have to interrupt their August vacations and come up with a proper plan.