What is the difference between Europeans and Americans? I don't mean the characteristic differences. Assume you have attended a meeting to talk business: what is the difference between the meeting carried out with Europeans and with Americans? I, myself, don't think that I have numerous, deep experiences, however, I have an answer to this question: I have left all the meetings, carried out with Americans, with a solid answer to the question on my mind, while I have always had mixed emotions coming out of a meeting carried out with Europeans. I have always felt in-between, as if I have both received an answer, and not have received one, at the same time. While everything was openly talked about in one, that was never the case in the other. Having conversations with Europeans has always made me confused, instead of clearing my mind up. I don't know why, but I have always felt to be left in an ambiguity.

Now, looking at how the European Union handles the financial crisis it happens to be in, I feel more or less the same. I can't seem to understand whether they are intervening to the crisis, or not, neither do I understand if they want to intervene, or not. They are having talks, to be honest, but it isn't possible to understand what these talks are going to result with. Such a senseless environment is created that, it seems as if something undercover is going on. It can't be understood solidly, what it is that they are doing. Whereas it is crucial what they are going to do nowadays. As long as they keep on maintaining this stillness, this ambiguity, the Euro will keep on depreciating, and as long as the Euro keeps depreciating, the Turkish lira will keep appreciating. And we will just stare, thinking: 'For how long? In which time period?' Those of you, who wonder, join me down the article. Let me explain to you what I've been thinking.

What is the sign that can help us decide whether the Euro will keep depreciating, or not? If you ask me, if the questions on minds about how the 500 billion Euros that has been promised to help those who have been damaged, get back on their feet will be used are answered, the Euro will stop depreciating. There is a 1 trillion dollar of funds that everyone, including the IMF, has promised, but how this fund will be utilized is still not decided upon. This is why, it is a good thing that the ministers of finance of the European Union came together this week and decided to form a special purpose vehicle which aims to ensure financial stability. This is a step taken in the right direction. The step may be taken, but I for one, have not yet understood how this special purpose vehicle mechanism will work. I get that the 500 billion Euros is going to be on the debit side of the balance sheet, but how will the asset be managed? What will be done with these, afterwards? Will the IMF decide what to purchase? Or, will the governments decide what to do with every single country after having received the approval of the Constitutional Court of Germany, pursuant to coming through the North Rhine Westphalia state elections, as we've grown accustomed to lately?  It is strange that these matters still remain unknown despite the open press meetings, and it also isn't very wise. The Euro will keep depreciating until the stockbrokers figure out whether this promised money will come in handy or not. Romania's and Bulgaria's flaws today will follow the slip of tongue in Hungary yesterday. And Euro will depreciate against Dollar.

The market perception is extremely bad. Due to this mystery at the center of matters, 73% of investors that took part in the survey carried out by Bloomberg think that just in a short while, Greece will restructure its debts. What does this mean? This means that Greece will not be able to pay its existing debt off, and go bankrupt. 48% expect Greece to leave the Euro zone. Only 23% of the participants believe that the 1 trillion dollar recovery package will be able to prevent the countries from going bankrupt. This is not good. The reason for this is the European governments that are not capable of seeing the trouble nearby. Is there any sense in trying to ban the swap operations with the trouble so close? There isn't.

Like Wolfgang Münchau has recently written in Financial Times, the European Union has to lift the mystery curtain, already. What do the European institutions need? Transparency. An effective communication policy and a whole lot of transparency are needed, as distinguished Süreyya Serdengeçti has expressed, in a casual meeting at TEPAV, the other day. This taste that says, 'What in the world have I eaten?', in everyone's mouths now, better be cleared.

What is it that we should expect, in this situation? Given the circumstances, it doesn't seem like the Euro has a chance to recuperate, this year. It's better for you to have a look at the explanations on how this stability fund works. If you are still a complete stranger to the issue after having done that, let go of this Euro matter for now.

This commentary was published in Referans daily on 10.06.2010