The make or break moment in the two-year-old crisis that has spread far beyond starting point Greece could come at a summit of EU leaders on Oct. 23. Germany and France have promised to set out a plan to stop infection, protect Europe’s banks and the wider world economy.
The draft communique, which must still be signed off by G20 finance ministers and central bankers "looks forward to further work to maximize the impact of the EFSF (bailout fund) in order to address contagion and to the outcome of the European Council on October 23" — unusually direct language for G20 diplomats.
Euro zone policymakers are trying to put flesh on the bones of a crisis resolution plan in time for the EU summit. It will involve plans to recapitalise banks, make Greek’s debt mountain more sustainable and ramp up the firepower of the bloc’s rescue fund.