A German official told Bloomberg today that the divisions between Germany and France on the EFSF have been way overblown.
Evidently, there are no “fundamental or serious” differences between the two countries on how to handle the rescue fund, and that the October 26 meeting “had nothing to do with Franco-German disagreement” (quotes from Bloomberg).
Futures are jumping on the news.
Even so, the facts suggest that differences do indeed exist in the policy recommendations endorsed by the two governments. And even if France and Germany more or less agree on what to do, it could not be more clear that the 17 leaders of EU countries remain divided on the policy that will best stem the crisis.
These divides were evident in yesterday’s announcement of a second EU summit to take place by October 26. This comes after the first summit — which will still take place this weekend — was postponed by more than a week.
This suggests that leaders remain far from a viable or final plan.