- Committed to cutting budget deficits below 3% of GDP by 2013 at the latest
As ever, the devil is in the details. The market will not be impressed with a pledge for “adequate” bailout funds; it wants a real, live number. The deficit pledge will be well received, even though it is probably unachievable by the PIGS.
EUR/USD is steady at slightly firmer levels of 1.2323, reacting more to a pullback in US yields to 3.46%, 10 bp off of highs, than the draft of the EU statement…
