As Greek Prime Minister George Papandreou shocked global markets with his suggestion that Greece might not follow through on its bailout plan, G-20 leaders gathered in Cannes, France for yet another summit to discuss Eurozone issues. Comments from summit attendees included 1) Australian Prime Minister Julia Gillard: "Europe needs to get its own house in order", 2) Canadian Prime Minister Stephen Harper: "We see absolutely no reason why Canada, or frankly why any range of other countries, would need to contribute to such a bailout" and 3) Japanese Finance Minister Jun Azumi: "The focus of debate is how to set up a firewall but we consider that the IMF should become one big wall." Additionally, Kenneth Rogoff, a former International Monetary Fund (IMF) chief economist said, “the new plan relies on a questionable mix of dubious financial-engineering gimmicks and vague promises of modest Asian funding.”
MY TAKE: It seems that hopes for a resolution of the Eurozone’s problems are turning into policymaker fatigue. With the can being kicked into early 2012 – it is likely that global markets will take matters into their own hands. Heightened unpredictability will continue.