In Davos, Merkel Presses Leaders to Keep Focus on Economy

Even though European leaders such as Italy's Mario Monti are pledging to make changes to continue to boost their economies, "there is a skepticism whether Europe's political leaders will follow through on such changes" among big investors, even after Germany's Angela Merkel called for continued efforts and her concern over "political complacency" in Europe. Bain & Company's managing director for Europe, Olivier Marchal, does not predict "any tangible impact" of these changes before 2014, "apart from the psychological effect" they may have. Marchal points out the reluctance for businesspeople to invest, with most "postponing strategic moves or preparing for things to get worse."