MidnightWatcher – Prophecy in Motion

By Ben Rooney – “NEW YORK (CNNMoney) — European leaders insist they are making progress on a comprehensive plan to tackle the eurozone’s debt and banking crisis.

But the details are foggy and last-minute delays suggest that significant disagreements remain unresolved.

On Wednesday, government heads from all 27 members of the European Union will gather for a second time, following a summit over the weekend.

EU politicians have promised to deliver an ambitious and durable solution to a crisis that poses the biggest threat to the euro since the common currency was launched over a decade ago.

‘The sovereign debt crisis threatens the very existence of the eurozone,’ said Howard Archer, chief European economist at IHS Global. ‘It is therefore absolutely imperative that European policymakers finally deliver a major package.’

The latest talks have focused on a three challenges: restructuring the Greek government’s crushing debt load, strengthening European banks and boosting the effectiveness of a limited rescue fund.

While the stakes are high, expectations are dim. It took three months for comparatively modest crisis measures announced in July to be approved by all 17 euro area governments.” Read more.

Italy in danger of collapsing over European Union demands – “Silvio Berlusconi’s centre-right coalition government in Italy appears in danger of collapsing over European Union demands for a demonstration of concrete action on economic reform by Wednesday’s summit of eurozone leaders. The EU ultimatum delivered to Mr Berlusconi in Brussels on Sunday risks breaking his coalition instead of giving it an external impetus to move ahead on measures to cut Italy’s debt and promote economic growth.” Read more.

Troubling questions over euro banks – “Europe’s banks will need to find at least €100-billion of new capital by next summer under a new plan to help stabilize their operations, raising troubling questions about where that money is going to come from. The tools those banks would normally have at their disposal to raise capital – selling off assets or issuing more shares – are fraught with problems as Europe struggles to prevent a sovereign debt crisis from crippling its banking system.” Read more.

Unresolved debt crisis sets off political shock waves – “Europe’s debt problems are erupting into a full-blown political crisis that that could go from merely damaging economic confidence to shattering the euro zone if it intensifies. Since the European Union summit on fixing the debt crisis ended Sunday night in Brussels, Italian Prime Minister Silvio Berlusconi has been humiliated, British Prime Minister David Cameron has scrambled to defuse a Tory rebellion on EU membership and German Chancellor Angela Merkel has decided to risk the future of the new European bailout fund on a full parliamentary vote.” Read more.