France and Germany ready to agree €2tn euro rescue fund

[banned from Kos]

http://www.guardian.co.uk/business/2011/oct/18/france-and-germany-move-towards-2tn-euro-fund?newsfeed=true

France and Germany have reached agreement to boost the eurozone's rescue fund to €2tn as part of a "comprehensive plan" to resolve the sovereign debt crisis that the eurozone summit should endorse this weekend, EU diplomats said.

The growing confidence that a deal can be struck at this Sunday's crisis summit came amid signs of market pressure on France following the warning by ratings agency Moody's that it might review the country's coveted AAA rating because of the cost of bailing out its banks and other members of the eurozone. The leaders of France and Germany hope to agree a deal that will assuage market uncertainties or, worse, volatility in the run-up to the G20 summit in Cannes early next month.

That should do it. Markets flying on the news.

[CJCRANE]

1. Nice work if you can get it.

I'm in the wrong business. And I thought banking was boring.

[applegrove]

2. That is good news. We don't need a Europe led recession.