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FTSE, DAX and CAC to Open Lower Amid Euro Confusion 

European stocks are expected to open lower following a weekend of talks over how to deal with the euro zone debt crisis,hard line comments from the German Chancellorand the resignation of the CEO of UBS.

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Jan Mammey | Stock4B | Getty Images

In Washington finance ministers met with central bankers and policy makers at the IMF’s annual meeting.

Reports indicated plans to allow Greece to default in an orderly way were under consideration.

Various reports also pointed to plans to recapitalize a number of Europe’s banks whilst there has even been talk of multi-trillion euro shock and awe moves that would enable the European Central Bank or European Financial Stability Fund (EFSF) to stop contagion spreading to the Italian and Spanish bond markets.

There was very little official detail on the talks however as speech after speech outlined how worried global policy makers were, without offering any clear signals on what the response will be to the debt crisis.

On Sunday night Angela Merkel used a one hour interview on German TV to say that allowing Greece to default risked destroying investor confidence in Europe and possibly spark contagion like we saw in 2008 after the collapse of Lehman Brothers.

"What we can't do is destroy the confidence of all investors mid-course and get a situation where they say that if we've done it for Greece, we will also do it for Spain, for Belgium, or any other country. Then not a single person would put their money in Europe anymore." said the Chancellor.

On Tuesday the Greek prime minister will arrive in Berlin for talks with Merkel ahead of a vote on Thursday when German lawmakers will decide whether to back an increase in the size of the EFSF.

Divisions between Merkel and her coalition partners could make that vote difficult, but the amount under consideration would need to be significantly increased if reports of shock and awe action are going to materialize.

In a speech on Sunday night Greek finance minister Evangelos Venizelos said the euro is facing a political and institutional crisis.

“The point is whether the Euro Area, which has one of the world’s most powerful currencies, has those institutional structures and the political capacity that can provide swift and decisive responses, and make decisions that convince the markets,” said Venizelos.

“As you very well know, crisis is first of all a problem but finally crisis can be a great historical opportunity,” he said.

“We must win this war, it is absolutely necessary to win this war.” said the Greek finance minister.

Separately, on Saturday morning the CEO of UBS left the company following rogue trading scandal that lost the bank of $2 billion.

Oswald Grübel resigned saying new leadership was needed to both regain trust following the scandal and push forward reform of the bank .

Sergio Ermotti, a former Unicredit banker has been named interim CEO. The market will be able to give its verdict at 9:00 CET.