Eurozone leaders meet in Frankfurt / EU leaders forced to hold second summit / Merkel begs for more time on plans

France’s President Nicolas Sarkozy flew to Frankfurt on the 19 October 2011 for an emergency meeting with leading German and EU players in the eurozone crisis including German chancellor Angela Merkel, as Franco-German differences bedevilled attempts to agree a comprehensive package of measures to present at the European Council and eurozone summits in Brussels planned for 23 October 2011

The French and German leaders discussed ways to leverage the European Financial Stability Facility (EFSF) in order to stretch its resources well beyond the current €400bn.
France wanted the EFSF to be turned into a bank so that it could access funding from the European Central Bank (ECB). Both the ECB and Germany, however, are opposed to this suggestion.

Subsequently, a further meeting was also planned for the 26 October 2011 because it was recognised that EU leaders would not be able to agree a rescue plan for the euro by the 23 October 2011.

Sweeping new rules requiring the approval of the German Bundestag for measures to deal with the eurozone crisis forced Angela Merkel, the German Chancellor, to plead for more time on the 20 October 2011 to negotiate a comprehensive package in Brussels.

BBC News, 20.10.11: Extra euro crisis summit called http://www.bbc.co.uk/news/business-15393260

PressEurop, 24.10.11: Angela rules the roost http://www.presseurop.eu//en/content/press-review/1091281-angela-rules-roost

ESO: Background information: There is no sunlit future for the euro http://www.europeansources.info/record/there-is-no-sunlit-future-for-the-euro/

Deutsche Welle, 20.10.11: Anxiety simmers as Europe searches for solutions to debt crisis http://www.dw-world.de/dw/article/0,,15474368,00.html

France24, 20.10.11: Debt action stalls as France, Germany disagree on bailout http://www.france24.com/en/20111019-sarkozy-flies-germany-talks-merkel-eurozone-crisis-debt-bailout-fund

EUObserver, 21.10.11: EU to hold second summit next week http://euobserver.com/19/114011

EurActiv, 21.10.11: Paris and Berlin announce second EU summit http://www.euractiv.com/euro-finance/paris-berlin-announce-second-eu-news-508472

Deutsche Welle, 20.10.11: What exactly is the eurozone's 'credit leverage mechanism?' http://www.dw-world.de/dw/article/0,,15475335,00.html

Spiegel Online International, 21.10.11: EU to Hold Second Summit Next Week Due to Differences http://www.spiegel.de/international/europe/0,1518,793074,00.html

Spiegel Online International, 20.10.11: Leveraging Explained. Europe's Idea for Maximizing the Backstop Fund http://www.spiegel.de/international/europe/0,1518,792994,00.html

Le Figaro, 21.10.11: They are burying the federal ideal (via PressEurop) http://www.presseurop.eu//en/content/article/1082971-they-are-burying-federal-ideal

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