The tension is mounting in Italy ahead of the EU summit. France and Germany have demanded that Italy introduces austerity measures as a matter of great urgency. The worry is that Italy's sovereign deby problem is such that it could eat up all the funds and leverage planned for the EFSF. Meanwhile, Nero Berlusconi has problems as the Northern League party threaten the stability of the government coalition and may call for elections.
In Berlin the EFSF proposals have to run the gauntlet of the German parliament, which some commentators see as being a huge gamble by Mrs Merkel, as the outcome of the vote is problematic.
Makes Mr Cameron's difficulty with his rebels very small beer.
See:
http://www.spiegel.de/international/europe/0,1518,793884,00.html (Italy)
http://www.bbc.co.uk/news/world-europe-15452367
http://www.spiegel.de/international/europe/0,1518,793848,00.html (Germany)
More problems: http://www.bbc.co.uk/news/business-15451328
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