Germany's Merkel: EU recovery fund negotiations are 'rocky'
Further comments by Merkel
- Time is pressing to reach agreement on EU recovery fund
- The goal is to get an agreement before the summer break
Considering their history of getting things done, it is more likely that this may get postponed beyond the summer than actually seeing a compromise in two weeks' time.
Just keep this issue in mind when looking at the euro or European bonds up until we get to the physical summit on 17-18 July. The hope of something being done is arguably what is helping European assets to keep calm for the most part.