EU Solution to Global Catastrophe Delayed

Hopes for the weekend’s summit of European leaders unveiling of a “comprehensive plan” to resolve the eurozone crisis have been quelled. No agreements will be made until a second summit which will probably take place on Wednesday.

Senior European officials said the second summit has been forced, in part, because of a delay in getting final numbers on Greece’s debt levels from the so-called “troika” of international lenders. Disagreements over whether Athens can continue to meet its debt obligations pervade. Gerrit Wiesmann, correspondent in Berlin says, the budget committee has been grilling finance minister Wolfgang Schäuble since shortly after 3pm, and there are doubts remaining that the European Financial Stability Facility four new instruments will rescue the fund agreed on by EU leaders in July. US stocks have been hit by signs the eurozone’s plan to resolve the crisis will be derailed by disagreement between Germany (NYSE:EWG) and France (NYSE:EWQ).

According to Bloomberg, he said there should be “no doubt” that Germany (NYSE:EWG) rejects leveraging the European Financial Stability Facility’s firepower by giving it access to European Central Bank refinancing. This is the key issue over which the eurozone negotiations have stumbled, as Nicolas Sarkozy told French lawmakers yesterday. “France is sticking to its proposal to turn the EFSF into a bank, backed by the ECB, while Germany and the ECB are adamantly opposed. Will they find a halfway point?” reports The World.