Announced operations strongly reduce the risk

Among all of the measures announced, which has the greatest impact on the markets

This is clearly the purchase of securities on the European Central Bank (ECB) bond markets. The institution, viewed as one of the most conservative of the world, gave a signal of confidence very important in showing that it was prepared to take sovereign risk on its balance sheet. Only this "nuclear" weapon could stop the contagion of the crisis. However, there are still a few days, the market thought not. This measure targets only the stress that was developed in the market. By buying back debt - that it has already started to make yesterday morning-, she said that bond markets were more in line with the fundamental. The impact is without precedent: in less than an hour, the rate to 2 years in the Greece it is relaxed at a speed never seen, from 18 to 7, to return to its levels earlier this year.

What should be the amount purchased by the ECB

This has not been clarified, but we are building on maximum EUR 200 billion, which would be largely sufficient to ensure the stability of markets. This represents less than seven times the size of the balance sheet of the institution. Above all, the ECB intervention will be offset: it does not have an impact on the monetary mass. It could do this through several means, such as the purchase of assets, the asset creation, but operations "reverse repo" reverse Refinancings, Editor's note are the most likely: that is, the ECB will be assets to financial institutions that provide in exchange for liquidity.

There is still much uncertainty on the 750 billion stabilization plan announced this weekend...

Indeed, several questions remain on this unprecedented plan. The support fund is based on two pillars: loans from the European Commission for 60 billion and an independent entity a SPV "special purpose vehicle" - equipped with EUR 440 billion. It is a first step towards the famous eurobond eurozone debt. The Germany have however indicated that this vehicle would not bond, still leading questions about mechanics. But the most important is the strong involvement of the international monetary Fund (IMF), to $ 250 billion.

These measures do mean the end of the crisis

It is a historical turning point, an unprecedented response. The ECB becomes a buyer of last resort for the titles of the peripheral countries, thereby eliminating the risk of liquidity on the sovereign debt at the heart of the crisis. There are mechanisms similar to those put in place shortly after the bankruptcy of Lehman Brothers, where the authorities, in the world, had sought to contain the risk of liquidity. However, the risk of credit to medium term of the States will remain. Concerns about public finances will not disappear with these measures.

The euro resumed yesterday. Is this movement sustainable

In the short term, the intervention is very positive for the European currency, but it does not solve the fundamental problems. The dynamics of growth is much lower in Europe than in the United States, which will continue to penalize the euro. We see the euro depreciate to 1.20 dollar by the end of the year.

And equity markets

The first elements of contagion on the banks exposed to the peripheral countries had appeared highly onerous financial values. Announced operations strongly reduce the risk. We were positive actions and we remain. Beyond intervention, several factors argue for a good holding markets: a rebound of international trade and an increase of revenues from businesses, showing that the recovery is not made only on a contraction of the costs. European markets Stoxx 600 should advance of 10 by the end of the year.

What impact will these ads take on growth

The debt crisis was to question the economic rebound. These measures give time to recovery to materialize. Even if countries will have to do more budget, there is little risk that this weighs on growth. As long as a State did not help, it won't need efforts "to Greek". Therefore, the measures will have that a moderate effect, especially since in the short term, we do not expect that a country requests assistance.