PARIS — The panic about Europe’s debt crisis seems to have subsided into mere pessimism this week, with the euro rebounding and investors encouraged by political leaders’ new willingness to take quick action to calm market fears.
The big underlying issues haven’t been erased: Spain is still dogged by speculation it may eventually need a rescue plan similar to the bailout already given to Greece. And many governments are cutting back on welfare programs and other spending to chip away at their heavy debt burdens — and sometimes facing street protests as a result.
Yet positive news from trouble spots Spain and Greece — as well as EU leaders’ united pledge for more banking transparency — helped buoy the euro to $1.2362 Friday, up from a four-year low last week near $1.19, and European stocks held steady.
