EUROPE - 
The Polish finance minister appears to have dashed hopes that a big package will be decided tomorrow. Jacek Rostowski gave this indication in a letter to Eurogroup President Jean-Claude Juncker last night, according to the FT Brussels by Peter Spiegel. Since Poland holds the rotating presidency of the EU, Rostowski is charged with calling meetings of the Ecofin, comprised of finance ministers from the 17 countries that use the euro. Here's what he said: As things stand at present, I understand that the full package may not be ready by Wednesday, 26 October. Were this the case, the presidency would need to postpone the Ecofin council meeting by a day or two. Therefore I would like to ask you to keep me informed on when the remaining elements of the package will be completed by the Eurogroup so that I can convene the Ecofin meeting as promptly as possible. Stock markets have turned negative after comments from German chancellor Angela Merkel and rumours that tomorrow's meeting of eurozone finance ministers has been cancelled. The FTSE has tumbled more than 30 points to 5515, a 0.6% fall. Spain's Ibex is down 1.1%, Portugal's PSI 1.4% and Italy's FTSE MIB 1.2%. Merkel said Germany was opposed to a phrase in the draft EU summit document that calls for support for the continued use of 'non-standard measures' by the European Central Bank. EU sources told Reuters said the phrase referred to the ECB's purchase of bonds from countries like Italy and Spain. Greek prime minister George Papandreou hopes Wednesday's EU summit will draw a line under Greece's economic crisis. He appealed for unity in his Socialist party to approve the latest round of austerity measures. He said the deal, which could include a reduction of up to 60% in the face value of Greece's debt of more than €200bn, would help reduce the burden on ordinary Greeks. Papandreou told Greek president Karolos Papoulis in a televised discussion before leaving for the summit: Tomorrow we want to be able to turn the page, so that we, as Europe and as a country, can move forward. We have been fighting a great battle... for these burdens and responsibilities to be shared, so that the Greek people can breathe and move forward with the country's rebirth. It takes a sense of calmness and unity from all parties.
The Polish finance minister appears to have dashed hopes that a big package will be decided tomorrow. Jacek Rostowski gave this indication in a letter to Eurogroup President Jean-Claude Juncker last night, according to the FT Brussels by Peter Spiegel. Since Poland holds the rotating presidency of the EU, Rostowski is charged with calling meetings of the Ecofin, comprised of finance ministers from the 17 countries that use the euro. Here's what he said: As things stand at present, I understand that the full package may not be ready by Wednesday, 26 October. Were this the case, the presidency would need to postpone the Ecofin council meeting by a day or two. Therefore I would like to ask you to keep me informed on when the remaining elements of the package will be completed by the Eurogroup so that I can convene the Ecofin meeting as promptly as possible. Stock markets have turned negative after comments from German chancellor Angela Merkel and rumours that tomorrow's meeting of eurozone finance ministers has been cancelled. The FTSE has tumbled more than 30 points to 5515, a 0.6% fall. Spain's Ibex is down 1.1%, Portugal's PSI 1.4% and Italy's FTSE MIB 1.2%. Merkel said Germany was opposed to a phrase in the draft EU summit document that calls for support for the continued use of 'non-standard measures' by the European Central Bank. EU sources told Reuters said the phrase referred to the ECB's purchase of bonds from countries like Italy and Spain. Greek prime minister George Papandreou hopes Wednesday's EU summit will draw a line under Greece's economic crisis. He appealed for unity in his Socialist party to approve the latest round of austerity measures. He said the deal, which could include a reduction of up to 60% in the face value of Greece's debt of more than €200bn, would help reduce the burden on ordinary Greeks. Papandreou told Greek president Karolos Papoulis in a televised discussion before leaving for the summit: Tomorrow we want to be able to turn the page, so that we, as Europe and as a country, can move forward. We have been fighting a great battle... for these burdens and responsibilities to be shared, so that the Greek people can breathe and move forward with the country's rebirth. It takes a sense of calmness and unity from all parties.
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The worry is Italy's €1.9 trillion debt pile, which at 120pc of GDP leaves the country vulnerable.
Mr Berlusconi yesterday insisted that "no one has anything to fear" from Italy's debt and in a thinly disguised warning to France and Germany, he said: "No one is in a position to teach lessons to their partners."
The European Commission said the pressure on Italy was about trying to strengthen a member state's economy.
"This is not about challenging sovereignty, it's not about lecturing, it's not about humiliating," said Commisison spokesman Amadeu Altafaj.
"But at the same time we have 27 democratically elected sovereigns that have agreed on reinforcing surveillance and having a higher degree of coordination of their economic policies. It makes sense, it's one of the main lessons of this crisis, so one (country) doesn't affect another."
Adding to Italy's woes were figures showing Italian consumer morale fell to its lowest in more than three years in October.
National statistics bureau ISTAT's headline consumer confidence index fell for the fifth month running to 92.9 in October from 94.2 in September, hitting its lowest level since July 2008, when the global economic crisis was intensifying
Its very clear that the UK should be out of the EU and its myopic world view and join NAFTA and increase its anglosphere credentials in what will be the global spot to be in. Maybe thats where closer links can be forged on a common platform, language, laws culture etc...without the huge differentials that exist with the
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