G20 Meeting & European Response

"You have 8 days" G20 Finance Ministers asserted to their European counterparts this weekend, as a lack of agreement on key issues continued and will likely be the talking point of the market on Monday morning.  Below is a summery of key outcomes and targets:

• Pressure mounted on Europe to derive a solution to its snowballing debt crisis to be presented at a continental summit in just 8 days. 
• IMF offer the prospect of wider international support if European lenders deliver on the promises and commit more of their own financial backing. 
• Details to be finalised on a comprehensive plan to recapitalise European banks.
• Europe is to come up with a feasible solution to the Greek debt crisis (haha)
• Details of whether the current EFSF safety net is to be leveraged/increased and to what amount.
• Decision on exact haircut banks will incur on Greek debt (current contribution is 21% as agreed in July).

At a glance, it is immediately obvious Europe have a lot of work to do.  I for one highly doubt the outcome to the European Summit to be held next weekend will satisfy the requests of anybody, let alone the market or G20.  While it's encouraging to witness global pressure finally impose a deadline (or would ultimatum be more appropriate?) there is too much ground to cover in too short of a period of time.  The underlying problem with this current situation is each Euro zone governments responds to bodies of people with different requirements, so reaching an agreement in such a short period of time is unrealistic.  In my view, we will witness a very similar situation to the squabbling which dominated congress around the end of July when the US debt ceiling was under review.  Plans to develop higher levels of fiscal integration within Europe could be what the market is looking for here, but for the same reasons as I mentioned earlier, I believe the chances of this happening are next to none.