EU summit meetings have had little effect on financial markets during the Eurozone crisis

European crisis management and EU summit meetings have become increasingly significant during the financial crisis. Dieter Smeets examines whether crisis meetings of European heads of state had a significant impact on Europe’s financial markets. He assesses their effect on member states’ sovereign bond yields, stock market indices and the exchange rate of the common currency, but finds limited impact. He concludes that market investors appear to be unconvinced by Europe’s economic and political crisis management.