Bank or insurance? Instead of at the EU summit, a decision is to be made again at a special summit because of the german-french dispute
No sign of agreement. Allegedly, berlin and paris had already agreed on a line how to definitely convert the temporary bailout fund EFSF via a lever into an insurance for banks in order to be able to increase the total amount up to 2 trillion euros (… And leveraged to 2 trillion euros). But far from it, at the secret meeting in frankfurt on wednesday, the german chancellor angela merkel and the french president nicolas sarkozy could not reach an agreement. If they wanted to pose as EU heads of government once again in their bilateral talks, they only exacerbated the situation by bargaining for national interests.
How merkel and sarkozy want to save their "euro bailout", as even the financial times deutschland now points out, is open to question. In order not to have to cancel another EU summit, as was the case after the break-up of the dexia bank, the summit is to take place on sunday after all. But in brussels there is only palaver to be heard. There will be no resolutions. That is why merkel has also canceled her government declaration scheduled for today, in which she wanted to declare what was to be printed through from paris and berlin on sunday in brussels.