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If rumours about postponing Sunday’s highly anticipated EU summit weren’t enough, now the Deutsche Press Agency is reporting that there is unlikely to be a deal on European Financial Stability Facility leverage this weekend (via ZeroHedge).Investors have had high hopes for such a plan, which could increase the firepower of the rescue fund dramatically.
It seems logical that EU leaders would wait to employ EFSF funds until they determine if and how they will expand its resources. At the moment, levering the rescue fund seems like the euro area’s best hope at getting the crisis under control.
DPA is also reporting (via ZeroHedge) that EU leaders could hold a second summit later next week. Get set for another week of crazy rumours.