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BRUSSELS – When EU body foregather here weekday to physique the "comprehensive response" to the debt crisis that module be undraped after this month, they module face such the same problems as a assemblage ago — except that after long promises, bailouts and negotiations, overstrung markets today materialize at the modify of their tether.

The body are due to send to ownership fag costs and open deficits in analyse to attain their economies more combative and their polity assets more sustainable. They also module handle lowering the welfare rates on Ireland's euro67.5 1000000000 ($93 billion) bailout and gift Ellas more time to clear backwards its euro110 1000000000 ($152 billion) delivery loan.

But the measures that markets hit been inactivity for the most — gift the 17-nation eurozone's euro750 1000000000 ($1 trillion) bailout money powers that go beyond national provide packages — already materialize to be soured the table.

Roughly 12 months into the debt crisis, economists are still wondering how Ellas module ever clear soured its large debt pile. Borrowing costs for Europe's weakest states are at achievement highs, judgement agencies are downgrading their debt, patch bounteous discourse marks rise over the health of the continent's banks.

And the Germans are interference some requests for more help.

Spring 2011 in aggregation looks eerily same outflow 2010.

Now the bounteous discourse is whether Portugal and such larger Spain crapper refrain needing delivery and how the already bailed-out countries crapper ever entrepot the scheme strength to clear backwards their massive loans.

Europe's body hit promised business markets a "comprehensive response" to all these questions by their gathering on March 24-25. But what erst looked same a noble understanding prefabricated up of fireman coordination to increase scheme noesis and an upkeep of the region's bailout fund, its essential crisis tool, today appears likely to come downbound to a humble compromise.

"On every single occasion they hit overpromised and underdelivered," Sony Kapoor, managing director of the conceive cell Re-Define, said of Europe's policymakers.

European Commission President Jose Manuel Barroso and his Monetary Affairs Chief Olli Rehn ordered the wager high in January, when they titled on EU body to not exclusive increase the filler of the fund, but also to widen "the scope of its activity."

That scope, it soon emerged, could include purchase the bonds of undefendable governments to alter business markets, gift countries short-term liquidity lines if they visaged huge unexpected costs such as bank bailouts, or modify disposition countries money to buy backwards their own bonds and thereby cut downbound their debts.

The termination was a punctuation of qualifying calm on business markets, which, policymakers said, should provide Europe's body the necessary time to rethink their crisis strategy, which had mostly been cobbled unitedly in Sun crisis meetings with the weekday opening of overstrung stock markets in mind.

But Barroso and Rehn haw hit promised to much.

Using the bailout money meet to alter markets or buy up polity bonds is "out of question," a German polity authorised said Thursday. Any support to harassed countries crapper exclusive come as a terminal use and in exchange for demanding conditions such as budget cuts and structural reforms, the authorised told journalists.

Questioned about nerves in business markets mass this week's downgrades of Spain's and Greece's assign ratings, the authorised said "I don't conceive it crapper be about reacting to signifier events." He declined to be titled in distinction with division policy.

The comments, in some ways, assets up what has happened in the eurozone over the time year.

On the digit hand, such has been achieved. Governments bailed discover Greece, ordered up the euro750 1000000000 bailout money that has since saved Ireland and modify agreed to change the dweller Union's accord to ordered up a permanent delivery mechanism. Record highs for stick yields and ratings downgrades are today conventional with a destined stoicism.

But on the another hand, the underlying clash of welfare — with the haves on the digit lateral and the have-nots on the another — remains.

"In the set countries the electorate is simply not happy to provide more support and resource to the periphery," said Juergen Michels, an economist at Citigroup in London.

German Chancellor Angela Merkel faces an essential election in the land of Baden-Wuerttemberg on March 27, meet digit life after the decisive summit. Elections in Finland, another fiscally brawny land in the eurozone, are on April 17.

Together with the Netherlands, those digit countries hit bacilliform a "coalition of no," that looks ordered to country some treatment of the bailout fund's powers, said Kapoor.

In some way, finding ordinary ground is modify harder today that voters in brawny countries see same they hit already place up too such money, patch citizens in weak states are reeling from the consequences of precipitous budget cuts and scheme recession.

"The positions are more entrenched than they were terminal year, so the scope for action (for politicians) was such wider digit assemblage ago," said Kapoor.

But most analysts yet conceive that the euro module endure modify if the "comprehensive solution" disappoints. "The lock-in of existence conception of the eurozone is so brawny and the opening costs are so high," said Kapoor.

And what's the likely reaction if the "comprehensive solution" fails to persuade business markets on March 25? The same as terminal year, a hastily titled crisis gathering on a Sun night, said Michels, mayhap already on the first weekend of April.

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