6th August 2012
"The tensions that have accompanied the euro zone in the past years are already showing signs of a psychological dissolution of Europe," Monti told Der Spiegel. While he backed the ECB's willingness to address "severe malfunctioning" in the government bond market, Monti said the problems "have to be solved quickly now so that there's no further uncertainty about the euro zone's ability to overcome the crisis."
There has been talk of new policy instruments to solve the crisis. Goldman Sachs says the ECB has a ‘creative new instrument' up its sleeve to solve the crisis.
Goldman Sachs credit strategists Charles Himmelberg and Lofti Karoui's say in a note to clients that since ECB president Mario Draghi is opposed in principle to unlimited support for sovereigns, it is likely that "creative new policy instruments" are waiting in the wings to be deployed.