This Saturday, European finance ministers struggled to reach an agreement to recapitalize the region’s banks only to find additional debates instead of reaching a final conclusion.
The latest suggestion called for a special purpose vehicle to attract commitments from private investors and sovereign wealth funds. Sources say French President Nicolas Sarkozy and German Chancellor Angela Merkel were set to discuss another option on Saturday as well.
Following a ten hour meeting, several officials seemed to feel EU leaders would finally reach an agreement regarding a comprehensive response to the debt crisis.
“I believe that the finance ministers have made progress and that we will achieve our ambitious goals by Wednesday,” said Ms. Merkel. Meanwhile, European Commission President Jose Manuel Barroso said a solution is “within reach,” whils Sarkozy added that the leaders face several more days filled with “absolutely critical meetings.”
Swedish Finance Minister Anders Borg said “We have laid the foundation for an agreement on the capital ratio question. We made some progress on the bank recapitalization side.”