France and Germany have less than a week of frantic negotiation ahead to resolve key differences on a “comprehensive plan” to end the eurozone sovereign debt crisis after the world’s leading finance ministers put the ball firmly in their court at the weekend.
The Group of 20 richest nations told the eurozone that by the European summit next Sunday it should: agree on the losses the private sector should take on Greek debt; arrange a credible plan for the recapitalisation of Europe’s banks; and install a firewall to protect other countries from Greece’s woes.
The eurozone is still some way from agreement in these areas and G20 finance ministers urged policymakers to act. Having risen sharply last week on expectations that Europe was getting a grip on its problems, financial markets are also nervously awaiting the political decisions to be taken this week.