AP - European leaders appeared unable to bring together all the parts of their promised grand plan to contain the debt crisis on Wednesday night, despite progress on key elements, as they struggled to persuade banks to agree to bigger losses on Greek debt.
Saxo bank chief economist Steen Jakobsen pinged me with an interesting set of comments regarding Italian interest rates....World has Major Funding GapOur estimation shows that on the 2012 interest payment alone Italy now needs to find additional 10 billion EUR to pay for the rise in interest rates.Some independent trading houses have calculated that the combined funding need for Spain and Italy combined (banks, and national debt) is 400-500 billion EUR per year for next two to three years.
A marathon nannycrat session ended with no deal as the IMF played hardball insisting Greece reduce debt to 120% of GDP by 2020.
Not to worry, Jean-Claude "Lie When It's Serious" Juncker says progress was made.
The head of Austria's central bank, Ewald Nowotny, and German finance minister Wolfgang Schaeuble have both made statements over this weekend that affect bailout options for Spain.
In particular, Nowotny says Spain must seek help before ECB buys bonds.
Spain would have to apply for a rescue package before qualifying for inclusion in the European Central Bank's plan to buy debt of struggling euro zone members, ECB policymaker Ewald Nowotny said.
By Research Recap:
The support package for Greece benefits all euro area sovereigns by containing the contagion risk that would likely have followed a disorderly payment default on existing Greek debt, says Moody’s Investors Service in a new Special Comment published today.
After a surprisingly manic election night the focus in Germany now shifts to the tricky task of forming a government. As Open Europe explains, many options remain possible. Merkel looks unlikely to gain a majority on her own while the FDP and AfD are certainly out of the Bundestag.
Euro-area finance chiefs, pressuring Cyprus to shrink its banking system as the condition for a bailout, are reviving demands they jettisoned last week as too extreme, four European officials said.
Finance ministers for the 17 euro countries are considering a plan to shutter the two biggest banks in Cyprus and freeze the assets of uninsured depositors, said the four officials, who asked not to be named because the talks are ongoing. The ministers are holding a teleconference tonight.fla
Cypriot President Nicos Anastasiades is meeting party leaders to hammer out a Plan B after a one-off tax on savings failed to get the support of any MPs.
Germany says banks in Cyprus may never reopen if a bailout is not agreed, reports The BBC.
Cyprus’s finance minister is in Moscow to seek help from Russia, which holds multi-billion dollar investments.