Euro-zone leaders still short of a deal: report (by MarketWatch)

FRANKFURT (MarketWatch) -- Euro-zone leaders have narrowed differences but are still short of a deal on a comprehensive solution to the region's debt crisis, Dow Jones Newswires reported Wednesday, citing people familiar with the talks. Euro-area leaders are set to meet Sunday in Brussels in a high-profile summit. The news report said France and Germany remain split over whether private-sector bond holders should be forced to take a larger hit than the 21% writedown agreed at a July summit. Berlin reportedly continues to push for bigger haircuts, while France,the European Central Bank and the European Commission remain skeptical. There are also doubts about Germany's willingness to sign off on a detailed plan to leverage the European Financial Stability Facility to provide the bailout fund with more firepower.

Sarkozy flies to Germany for euro talks: reports (by MarketWatch)

FRANKFURT (MarketWatch) -- French President Nicolas Sarkozy will fly to Frankfurt later Wednesday to meet with outgoing European Central Bank President Jean-Claude Trichet, German Chancellor Angela Merkel, International Monetary Fund chief Christine Lagarde, incoming ECB head Mario Draghi and others in an effort to score a breakthrough in talks to devise a comprehensive solution to the euro-zone debt crisis ahead of a key summit meeting of euro-area leaders on Sunday, news reports said. Sarkozy told French lawmakers that a dispute over how to boost the firepower of the European Financial Stability Facility, the region's bailout fund, had stalled talks, Reuters reported. Officials are gathered in Frankfurt for a farewell ceremony for Trichet, who leaves the ECB at the end of the month.