Pessimism Over Eurozone Crisis Deepens as EU Finance Ministers Abruptly Cancel Meeting

Doubts over the likelihood of any near-term resolution to the euro zone debt crisis expanded after a key meeting of European Union (EU) finance ministers set for Wednesday was cancelled, according to an EU spokesman.

Reuters reported that the finance ministers parley, known as Ecofin, was cancelled because details of topics to be discussed at the meeting were not finalized.

Ecofin might also meet in the coming days to discuss whatever proposals the Eurozone leaders come up with on Wednesday night, the spokesman noted.

Ministers of finance may meet in the coming days to fine-tune decisions that will be taken tomorrow, said the spokesman for Herman Van Rompuy, the European Council president.

Meanwhile, the wider summit of EU leaders in Brussels, Belgium will proceed as normal.

Senior government officials will meet Wednesday to complete details of a new plan to ease the gnawing debt crisis, including debt relief for Greece, a recapitalization of European banks and an expansion of the 440 billion euro ($611 billion) European Financial Stability Facility (EFSF) rescue fund.

“Further work at the level of ministers of finance will be conducted based on the outcome [of the summit meeting],” said a spokesman for the EU.

“The aim is to adopt all necessary elements and details concerning the package, as promptly as possible.”

Nonetheless, a lack of steady progress in tacking the debt crisis raised pessimism among investors and the market.

Of urgent importance, the two most powerful nations in Europe, France and Germany, have not reached a compromise on how exactly to increase the size of the EFSF bailout reserve.

In later trading, European bourses are down; while U.S. stocks indices have fallen more than 1.00 percent in noon trading; and the euro is down against the dollar.