Eurozone crisis -where are we?

We are one day away from another meeting of the Eurozone Ministers, wrestling with huge European debt problems but whether we are one day away from a solution remains to be seen.

The three situations under discussion are these: 

1. Greece. This is at the heart of the debt crisis and it is not now if they default, it is a  matter of when and by how much. The word " haircut" in this context refers to the amount of loss any lender to Greece may have to take in the very near future. Amounts between 21% and 60% are being discussed but it is a classic lose lose situation. If it is at the lower end it might not be preceived as being sufficient and at the higher it could push lending banks over the edge.
2. Recapitalisation of banks seems to be progressing nicely and hopefully those banks most effected by Greek losses, or any other future problems will be able to weather the storm or call on fresh capital.
3. Increasing the amount of the bailout fund, rescue package, or to give it the correct name, the European Financial Stability Fund (EFSF), is  proving harder to agree on. Again the amount has to be at the right level so markets do not perceive European countries, not just Greece, to be under protected in the future, thus avoiding contagion.