European Council President Herman van Rompuy announced today that it has decided to convene the European council on October 23 and not October 17th as originally announced.

This "planning" will allow EU leaders to complete strategy solutions on debt crisis in the euro area, also said President Van Rompuy. He added that additional items are needed to clarify the situation in Greece, recapitalize banks and fund efficiency emergency. These elements are closely linked to the outcome of expert troika mission in Greece on the status of implementation of the reform plan.

Council President asked the Polish Presidency of the EU to establish a meeting of the Ecofin Council and the Eurogroup summit postponed before October 23.

After several controversies related to the positions of Germany and France on recapitalization of banks and the use of the emergency fund, Merkel and Sarkozy went out last night, said they "are in total agreement" that have a plan, but he will remain secret until the end.
Merkel and Sarkozy also said that Germany and France will propose "significant changes in the European Treaties," adding that they are in favor of "greater integration of the euro area".

The first victim: French bank Dexia Belgium

Economists consider it urgently needs a concrete plan after the Franco-Belgian bank Dexia implosion and after rating agency Moody's has disqualified 21 European banks (12 British and 9 Portuguese).

Nationalization by the Belgian State, the internal operations of Dexia was accepted by the board today formally Belgian bank and government with state guarantees worth 90 billion euros to finance the group. Brussels will be paid four billion euros to Dexia Bank Belgium to take, including a large retail bank focused on lending to local governments. This is the first step towards dismantling the Franco-Belgian bank, which fell victim to the loss of liquidity generated by the debt crisis in the euro area.

Differences: what should be used for emergency fund

Paris would like to access European Financial Stability Fund Facility (EFSF) for banks to recapitalize its debt exposed to several euro area countries. Berlin, however, insists that FESF should be used only as a last resort, when national funds are not available.

Another dispute is how FESF be used to buy sovereign debt, especially if Greece will not get another installment of the loan. France does not want FESF rules in this chapter, while Germany wants to limit the amount used for each Member State to impose a deadline for the purchase of bonds.