by Calculated Risk on 7/04/2012 09:55:00 AM

Martin Wolf has been a consistent critic of eurozone policymakers ...

From Martin Wolf at the Financial Times: A Step At Last in the Right Direction and here at CNBC.

The 19th crisis summit was better than many of its disappointing predecessors. But the game has not yet changed. Helpful steps were taken.

Wolf provides an overview of the steps taken, and concludes:

Let us not be too grudging: the decision to allow the ESM to recapitalize banks directly is possibly very important, both in itself and for what it portends.

... Nevertheless, the biggest danger is that the economics of the euro zone are deteriorating fast. Joblessness reached 11.1 percent in May, the highest on record for the zone.

Worse ... the ECB is hopelessly late in taking necessary monetary action. ...

It is conceivable that the euro zone will struggle through this economic trench warfare over the next several years. However, the costs – not just economic but also political – are likely to be enormous.

This is the least pessimistic I've seen Wolf, and his view is still very grim. Note: The ECB is expected to cut rates tomorrow.