France has argued the most effective way of leveraging the European Financial Stability Facility is to turn it into a bank which could then access funding from the ECB, but both the central bank and the German government have opposed this.
“In Germany, the coalition is divided on this issue. It is not just Angela Merkel who we need to convince,” [French President Nicolas Sarkozy] told the parliamentarians at a lunch meeting, according to Charles de Courson, one of the legislators present.
His comments fueled doubts about whether euro zone leaders will be able to agree a clear and convincing plan when they meet on Sunday.
via Sarkozy says euro zone talks stuck, flies to Germany | Top News | Reuters.