We May Be Getting Ready For The BLACKEST October Ever ! “No Deal In Sight ! Europe Closer To A Death Spiral !”

Part of the headline (…the first sentence is from Prisoner #26…the last two sentences aren’t) was ripped from one of the greatest DOOM sites going: GLP ! However, it may be correct ! And, as France and Germany dither…the rest of the world waits for a solution – the only problem ? There probably isn’t a solution !

10/20/2011 from Der Spiegel

No Deal in Sight – Germany and France Divided over Euro Bailout

French President Nicolas Sarkozy was at an emergency euro meeting in Frankfurt in an effort to find agreement with Germany. But the meeting ended with no apparent progress made, raising questions about whether a solution to the currency crisis will be found before the EU summit on Sunday.

Wednesday’s emergency meeting in Frankfurt, attended by French President Nicolas Sarkozy, Chancellor Angela Merkel and important European Union leaders, was hastily convened. And its last-minute nature underscores how dramatic the situation has become in the run-up to the EU summit in Brussels on Sunday. Sarkozy even missed the birth of his daughter, as wife Carla Bruni gave birth to Dalia Sarkozy on Wednesday evening.

With only a few days to go before the EU summit, Europe’s two most important countries still remain divided on a key issue. It is a division that threatens to jeopardize efforts to agree to a comprehensive rescue package on Sunday.

France is pushing for the euro backstop fund, the European Financial Stability Facility (EFSF), to be provided with a a banking license that would enable it to use its assets as collateral to borrow even more money from the European Central Bank (ECB). Both Germany and the ECB oppose the step, but France is insisting.

“You know the French position and we are sticking to it,” French Finance Minister Francois Baroin said in Frankfurt before the meeting. “We think that clearly the best solution is that the fund has a banking license with the central bank, but everyone knows about the reticence of the central bank. Everyone also knows about the Germans’ reticence. But for us that remains … the most effective solution.” Both Baroin and his German counterpart Wolfgang Schäuble also participated in the meeting.

Senior officials in the German government say the country is opposed to the French solution. Berlin instead favors an approach that would turn the backstop into a kind of insurance fund providing guarantees to public and private investors by covering the first 20 to 30 percent losses on their investments in state bonds. Such a move could allow the fund to martial aid worth up to €1 trillion. The German government also enjoys the ECB’s support.

Following Thursday’s meeting, it appears Germany and France could be facing an impasse in the euro crisis. After two hours, >> the talks ended without Merkel or Sarkozy providing any statement.

‘Everything Could Melt’

According to the Financial Times, Charles de Courson, a member of France’s national assembly who had met with Sarkozy prior to the Frankfurt meeting, said: >> “It is not just Merkel who needs to be convinced. … (The president) hopes to find a solution. >>>> If there is not a solution on Sunday, everything could melt.”

There was no confirmation after the talks as to whether the sticking point had been discussed. Representatives of the German government said only that the meeting dealt with open questions pertaining to the rescue of the common currency. Since the announcement earlier this month by Merkel and Sarkozy that they would unveil a joint plan to save the currency, officials at all levels of both governments have been working feverishly to find an agreement. “There are extremely intensive discussions, extremely intensive conferences, conference calls and meetings,” a spokesman for Schäuble said on Thursday morning in Berlin.

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Full article at: http://www.spiegel.de/international/europe/0,1518,792939,00.html

Here’s the thread from GLP: http://www.godlikeproductions.com/forum1/message1677965/pg1

Read more at Trapped on an Insane Planet