The gloom so reminiscent of the collective mood of  officials and Leaders at Cannes seemed to lift this morning following the Greek election results.  Even the press conference from EU officials Herman Van Rompuy, President of the European Council and Jose Manuel Barroso, President of the European Commission seemed energetic and forward leaning.  The Greeks were urged  to move quickly to form a government and proceed forward on implementing what had previously been agreed to by earlier Greek authorities. Reference was made to the upcoming European Summit at the end of the month with the officials speaking of the plan to raise the levels of banking and institutional integration – as well as fiscal integration, in the Eurozone.

So the warmth of averting disaster filled the room and extended to the audience of journalists and other media types.  Only the Canadian Sun media reporter caused disquiet raising the ire of President Barroso with a critique of European actions by the Canadian Prime Minister Stephen Harper. This animated the generally downbeat European official, Barroso who responded angrily to the reporter’s question insisting that Europe did not need lessons from anyone and declaring that reform by democratic countries – all 27 of the EU – takes time.  And, while Europe had to take care of its internal imbalances others – read that as China and the US – had to take care of their external imbalances.

And that, it seems to me, was the unspoken problem left on the table by the European officials.  The G20 Leaders Summit has suffered from a breach in the timeline of results between the Leaders plans and goals and the incremental results from the tasking on medium-term reforms from the many international and transgovernmental regulatory networks and organizations – the ministers, working groups, IMF, FSB, IOSCO, etc.

But added to this timeline rupture there is now a second.  It is apparent that the EU officials are describing a timeline for reform that stretches out for months if not years.  I expect that global markets and non-European officials andLeaders  will not accept such a timeline – even in the name of democracy and democratic accountabilty.  It could get very fractious and turbulent.

Timeline ruptures are politically serious to the legitimacy and success of the G20 Leaders Summit.

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