Euro zone's fiscal union signals encouraging: S&P

European leaders can still contain the region's debt crisis and protect weaker economies from contagion should Greece default again, but time is running out, Standard & Poor's analysts told Reuters on Wednesday.

Policymakers in the euro zone need to make swift decisions about moving to a fiscal union and solving the region's banking crisis.

It has been "encouraging to see lately some signs the policymakers seem to be willing to put together and articulate a long-term plan and vision for how Europe will more fully integrate," said S&P global head of sovereign ratings Curt Moulton.

"The risks ... are they take too long to develop a plan and their decisions are too incremental as they go along."

European leaders can also protect some of the region's weaker economies should Greece default again, said S&P sovereign rating committee chairman John Chambers.

"We think that with a robust policy response by the Europeans, that they can insulate some of their governments that are currently getting official assistance from some of the fallout" if Greece defaults, Mr Chambers said. REUTERS