Summit downgraded amid EU wrangling

SUNDAY’S EU summit — expected to be pivotal to the eurozone’s future — has been downgraded to an interim one with another called for next week because of wrangling between France and Germany over how to boost the EU’s bailout fund.

Markets held up reasonably well yesterday evening as the news was leaked mainly because of rumours suggesting the €440 billion fund was due to be increased massively to more than €1 trillion.

Despite the euro’s problems threatening to exacerbate a global slowdown, this will be the second time the EU’s two biggest members pulled the plug on agreeing the decisive decisions they promised. The summit originally scheduled for earlier this week was put off until this weekend.