Topic: Germany

"He is not in a confrontational mindset. He didn't arrive brandishing a
Kalashnikov and saying 'you must accept euro bonds'," one aide said. "It's a
different approach."

European shares are called to open the trading day higher despite a lackluster European Union summit that found Greece being urged to stay in the euro zone but to honor commitments to its bailout agreement.

To the frustration of Mario Draghi the European Central Bank is once again being eyed as a possible saviour of Europe’s monetary union. The FT reports.

Events of the past week suggest “the street” is beginning to take control of the financial system. People are expressing fears about the future of the euro and Europe by taking their money out of banks.

Greeks are notoriously reluctant to pay taxes, but even those that do are holding off at the moment until they are sure their country stays in the euro zone.

Spanish banks are likely to need more money from the government to make sure they are well capitalized, Moritz Kraemer, head of European Sovereign ratings at S&P, told CNBC on Wednesday.

Strong demand for Germany’s two-year bonds, which offer nothing in return, shows that opening Pandora’s Box in Europe has sapped investor confidence, Jim O'Neill, chairman at Goldman Sachs Asset Management told CNBC’s “Worldwide Exchange.”

Germany sold 4.56 billion euros ($5.8 billion) of bonds carrying a zero percent coupon on Wednesday, its first-ever sale of debt offering investors no regular return and underscoring its safe-haven appeal at a time of turmoil in the euro currency zone.

European leaders meet in Brussels this evening for an informal dinner being billed as a showdown between German Chancellor Angela Merkel and French President Francois Hollande over the tricky issue of Eurobonds—bonds issued by the EU and backed by euro zone members collectively.

European shares were called to open lower sharply lower on Wednesday as investor caution replaced hope ahead of an unofficial European Union summit in Brussels to discuss policy responses to the euro zone crisis.

Former Greek Prime Minister Lucas Papademos told CNBC  there are no preparations underway in Greece for possibly exiting the euro, but can't "exclude the possibility" that other countries are making arrangements.

As Greece's financial stability fund approved an 18 billion euro ($23 billion) for the country's biggest banks, former Prime Minister Papademos suggested Greece is prepping to exit the euro zone.

Germany dismissed a French-led call for euro zone nations to issue common bonds, a day before a European Union leaders' summit which investors are looking to for new measures to counter the bloc's debt crisis.

Germany will pay no interest to borrow money over two years this week, taking advantage of investor demand for the euro zone's safest bonds as worries about a Greek euro exit rattle financial markets.

Christine Lagarde, managing director of the International Monetary Fund, vowed that the organization, which is part-funding Greece’s bailout, will “never leave the table” with its new government.