Europe's economic struggles continue despite Greek deal

Simon Tilford of the CER, says the ECB must step in - something its top officials are reluctant to do. "The problem at the moment is that we’re in a period of exceptionally weak economic growth. We're going through unprecedented economic weakness. And that, I think, requires unorthodox action on the part of central banks." Tilford says if the central bank buys some Italian bonds, it will give other investors the confidence to do the same, and at affordable interest rates. He believes that is a more practical and effective approach to the troubled European economies, arguing that austerity packages like the one being forced on Greece will not actually solve the problem. "The budget cuts they've been asked to make are unfeasible ... If they do attempt to push them through, all they're going to do is compound the weaknesses. The current policy response guarantees just almost indefinite stagnation, recession in the Greek economy and ongoing debt servicing problems."