Dopey, the French and others want the EFSF turned into a bank that will borrow from the ECB.
The EFSF will back those countries in need (Belgium is quietly having trouble) and be partly funded by the ECB and anyone else silly enough to lend to a potential bank that has a potential credit downgrade in front of it.
This of course is the rub. Germany is concerned that the ECB will print money to stabilize the bond markets and therefore wants nothing to do with that aspect. France wants it. Germany doesn't.
And the problem should be brought to a head soon enough. Italy's situation will need intervention anytime soon. 50 billion euro will be offered to the new Italian PM as a fund to give space to debt turnover. That may not be enough and this thing could go feral quickly.
It's Nicolas Sarkozy's political head on the block but the ultimate decision belongs to Angela Merkel.
