Euro Zone Crisis Enters Its Political Phase - WSJ.com: "The outlook for the euro zone has improved, he said. "Why? Because we have shown we mean business when we say we are ready to do whatever is necessary to secure financial stability in the euro zone." This year has seen, he said, an announcement by the European Central Bank of a new policy to shore up government-bond markets, actions to control public finances, some ambitious economic reforms, a strengthened bailout fund, proposals to tighten economic integration and the first steps toward a single banking union in the euro zone. The crisis isn't yet over, he said, and European leaders should avoid complacency. But he isn't alone in concluding that something important happened that reduced the financial risks to the euro in 2012. One big reason for the shift in sentiment has been, as Mr. Barroso said, the ECB's announcement of government-bond purchases following the pledge in July by Mario Draghi, the ECB president, "to do whatever it takes to preserve the euro." . . . Mr. Draghi's plan remains untested, and the possibility that it won't work as hoped remains a risk for 2013. . ."
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