"The euro continues to rest on solid fundamentals."
The markets appear to have been mildly heartened by that, and by other measures including another €130 billion for Greece and an enormous expansion of the European Financial Stability Facility. But only the most gullible eurocrats will be fully reassured by this plan. There is, as Fraser suggested last night, an abiding stench of fantasy about all these numbers. Europe's begging bowl has yet to be replenished by China. And that 50 per cent "haircut" for holders of Greek debt? FT's Alphaville blog notes how the bondholders sound more tentative about it, and the details of it, than Merkel and Sarkozy would have you believe.
Still, the politicians have their communiqué, and it is more concrete than we might have expected a couple of days ago. They are already spinning this as a terrific success. That is, until the next emergency summit.