Eurozone still at odds over EFSF and Greek haircuts

Confusion over the extent of measures due to be announced at the EU summit today have sparked fresh concerns over policymakers' ability to resolve the sovereign debt crisis.

Although there is thought to be agreement on the need for bank recapitalisation, eurozone leaders remain divided on issues including Greek bond haircuts and the expansion of the European Financial Stability Facility(EFSF), according to Reuters. The likelihood of concrete numbers and targets emerging from the meeting is also fading after the FT said a draft document contained no specifics on Greek bondholder losses or the exact size of the enlarged EFSF. The voluntary 21% haircut on Greek debt agreed in July is now considered inadequate, with 50-60% writedowns being advocated by many e...