European stock markets opened on Wednesday morning to the rumour German Chancellor Angela Merkel and French President Nicolas Sarkozy will raise the eurozone rescue fund to two trillion euros at a summit on Sunday.
However a number of sources have already poured doubt on the report in Britain’s The Guardian.
And yesterday Merkel warned: “These sovereign debts have been built up over decades and therefore one cannot resolve them with one summit but it will take difficult, long-term work.”
But the pressure is on with Moody’s rating agency threatening to cut France’s prized AAA status.
And they cut Spain’s bond rating to A1, from Aa2 – that is even lower than downgrades issued by other major agencies in recent weeks.
Moody’s said they had made the decision because of the lack of a credible resolution to the sovereign debt crisis.
Meanwhile Standard and Poor’s agency has cut its rates on 24 Italian banks including BMPS – the oldest bank in the world – citing the country’s worsening economic situation.