Germany: Wake Up from Bank Bailout Day Dreams

Germany (NYSE:EWG) shot down hopes today of European Union leaders putting together a solid fix to the euro-area debt crisis from their upcoming Oct. 23 summit.

In a briefing, Steffen Seibert, chief spokesman for German Chancellor Angela Merkel, remarked that “dreams that are taking hold again now that with this package everything will be solved and everything will be over on Monday won’t be able to be fulfilled.” He added that ways to end the crisis “surely extends well into next year.”

This past weekend the Group of 20 finance ministers and central bankers met in Paris (NYSE:EWQ) and supported parts of a Greece plan to avoid a default, bolster banks and curb contagion. At this weekend’s summit, the leaders will meet in Brussels and deliver the plan.

The busy summit agenda will also include discussions of a coordinated effort to recapitalize Europe’s banks (NYSE:KBE), how to immediately implement the European Financial Stability Facility, the EU’s rescue fund for indebted states, and ways to tighten economic and financial policy.