BRUSSELS—Europe takes its traditional long August break seriously. That's why a host of powerful people were out of town for this week's market upheaval—complicating the region's response to its debt crisis and drawing criticism of leaders who might rather be at the beach.
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Nicolas Sarkozy, in black, vacationed Friday in the south of France.
German Chancellor Angela Merkel and French President Nicolas Sarkozy are among those who have chosen not to return to their capitals. Meanwhile, the legislatures of some of the Continent's biggest economies—Germany, France and Spain—are on recess.
European Union leaders had hoped a July 21 summit, yielding a second bailout package for Greece, would give them a respite until September.
That was not to be.
Spanish Prime Minister José Luis Rodríguez Zapatero, taking heed of the burgeoning crisis, set a back-to-work tone on Tuesday, when he canceled a trip to a nature reserve in southern Spain and spent the day at his desk in Madrid. The risk premium on his country's bonds, after all, had hit four percentage points for the first time since the creation of the euro.
European politicians of all stripes followed. Some cut short holidays, or announced they weren't leaving town. Even Italian Prime Minister Silvio Berlusconi stayed home, though his announcement Wednesday that Italy wasn't going to rush into an economic overhaul set markets reeling. By Friday, he had backtracked, staying in Rome with his cabinet to press Parliament to approve an overhaul.
Others insisted they worked just as well on holiday. The European Union's Economics Commissioner Olli Rehn "says his Internet connection is faster in Finland than in Brussels," said Chantal Hughes, a commission spokeswoman.
The issue, say economic historians, is relevant because financial crises often require strong individual leadership, and because summer's low trading volumes expose the market to volatility.
Willem Buiter, chief economist with Citigroup in London, said euro-zone leaders were irresponsible to "send their parliaments on holiday this summer before they had enhanced and enlarged" the EU's bailout fund.
Germany's main opposition party, the Social Democrats, on Friday called for Ms. Merkel to "end her vacation before the markets force her to." The chancellor is on holiday in Italy.
Also in Italy was British Prime Minister David Cameron, who, with his Treasury chief in California, was criticized by opposition politicians, who said he was leaving the government unmanned during a crisis.
Mr. Sarkozy may have pre-empted such criticism on Monday when he ordered "no holidays this August" for his ministers, said a spokeswoman. "Rest, yes, but remain alert always," she said.
Mr. Sarkozy himself is enjoying a three-week stay at his wife's villa in Cap Nègre on the French Riviera. If crisis doesn't intervene, they won't be back in Paris until Aug. 24.
"If you didn't allow vacations during crises, [EU leaders] would not have had a vacation in the last three years," said Kim Oosterlinck of the Solvay Brussels School of Economics and Management.
Italy's elite, even in times of crisis, have been loath to abandon their yachts and beachside villas. Last year, Mr. Berlusconi relocated to his palatial villa on the Mediterranean island of Sardinia as a rebellion among his political ranks threatened his majority in parliament.
Mr. Berlusconi and his cabinet are now staying in Rome to press parliament for approval of the government's plan to tighten public spending and balance the budget by 2013.
A swath of lawmakers will remain in Rome to review the plan, a parliament spokesman said. The rest of parliament will remain on call to possibly vote on it, the spokesman said.
One spark of this week's turmoil was a pessimistic letter released by European Commission President José Manuel Barroso. Commission officials said they couldn't have foreseen the reaction. "You don't when it's going to happen, that's why it's called a crisis," said Frederic Vincent, who is filling in as a special emergency European Commission spokesman this weekend while others are away.
"August is not October, and Mr. Barroso is on vacation like lots of people throughout Europe," he said. "But he's still working."
—Stacy Meichtry and Noemie Bisserbe contributed to this article.
Write to John W. Miller at john.miller@dowjones.com
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