Urgent "summit" in Frankfurt

With the statements of the representative of the finance ministry that there is no question of further strengthening the capital of the temporary support fund, the well-known EFSF, Germany sparked a mini emergency "summit."

These statements substantially invalidate the EFSF and the role everyone thought it could play either as a financier or as a guarantor of the bonds of weaker Eurozone countries. This development leads to the reversal of the data regarding the management of the Greek, and by extension the European debt problem, with the French side getting anxious, as no decision on "a comprehensive and viable" debt solution in Greece and Europe will deliver a huge blow first of all to France, with its banks exposed to regional debt and "threatened" by a credit downgrade by the lurking rating houses.

And as if the EFSF statement were not enough, Merkel proceeded to a new stance that makes for a double reading: she stressed that "EU leaders should not hesitate to proceed to drastic changes in the rules or the Treaties that govern the European Union", adding that this topic is not taboo for her. Essentially she "photographed" the intentions of Germany to proceed immediately with separating the "strong" from the "weak" inside Europe. Firstly, this directly concerns our country and secondly it is quite reminiscent of the calls by German finmin Wolfgang Schaeuble requesting a speeding up in the operation of the ESM. But why such insistence on the ESM; Because unlike the EFSF, it provides compiled bankruptcy procedures for a country/member of the euro!

After these developments, the French president will travel to Frankfurt trying to "unstick" Europe’s draft for exiting the crisis. It was originally announced that Sarkozy and Merkel would have a telephone conversation on Wednesday afternoon, but the situation is much more dramatic. Sarkozy spoke to his colleagues and noted that he is going to Frankfurt because the coming Summit is in danger of turning into a debacle.

He will be accompanied by the outgoing and new ECB presidents, Trichet and Dragan, the European Commission president Jose Manuel Barroso, the European Council president Herman Van Rompuy and the IMF general director Christine Lagarde.