What will be enough to calm the financial markets?

Greece remains volatile as investors continue to be weary Photo: Reuters/Murad Sezer

The Greek election result was clearly not enough to calm down the financial markets across Europe. This morning they were predictably relieved that politicians who wanted to kick out the terms of the Greek bailout deal lost the election.

But the relief only lasted about 30 minutes. Investors' concerns soon swung back to Spain, with the cost of borrowing for that country creeping ever higher, now consistently over the threshold of 7 percent where previous countries have had to ask for bailouts.

I asked two members of the ITV News Business Club, both senior figures in the City why the Greek election result hasn't made much difference. Richard Ward, the chief executive of Lloyd's of London, told me: "We need a form of fiscal union to make sure the eurozone remains a viable currency".

But he questioned whether politicians, gathering now at G20, would move fast or far enough towards that kind of comprehensive solution with new rules.

The markets are undecided, and I'm undecided as to whether they actually have the political wherewithal to do it.

Chris Sullivan, the Chief Executive of the Royal Bank of Scotland, UK Corporate Banking Division said: "The reason you get this volatility so quickly is that everyone asks the same question...'that sounded great for half an hour but now what is going to happen?' Europe has to get together and recognise that the good of the whole is good for everyone."

With Angela Merkel arriving at the G20 talks in Mexico adamant that there will be no easing up on the terms for Greece, it seems unlikely political meetings in the next couple of days will move us far in that direction.