- EZ debt talks now stalling on the issue of private sector haircuts; private sector looking at 40% and EZ leaders pushing for 50% minimum. Talks have been described as difficult
- Much of focus now on promised Italian economic reforms including raising the pension age, and how this will be achieved. Some talk that Berlusconi has agreed to resign before the end of January as a condition for his coalition partner signing up to reforms.
- EBA releases exact details on over EUR100 billion of extra capital requirements for European banks
All told, we do seem to be getting some progress and both Merkel and Sarkozy are taking a very hands-on approach in dealings with the private sector banks and with potential Angels, such as China. Still issues to be resolved, but at this stage I’d put my hard-earned on the EFSF being in place inside the next week.
