G20 Summit: Angela Merkel Admits 'There’s No Firewall Deal'

The German Chancellor, Angela Merkel, has confessed that there is no deal on the table to fund the IMF or a Eurozone firewall which has sent markets tumbling across the world.

Shortly following the announcement, the single currency was down around one cent, to a low of $1.3751, the yield on ten-year Italian bonds jumped, to a high of 6.385% (from a low of 6.185%) and Germany's main stock market index, the DAX, fell 2%.

On a bleak day in Cannes, there was a melancholy feeling among leaders and a terrible epiphany that nothing of great significance had been achieved.

One observer said following at the end of the prime minister's, David Cameron, press conference: "That was gloomy."

Eyes elsewhere

Essentially, Greece had been dictating terms all day with eurozone leaders unable to confirm whether or not it will even be a part of the EU's future.

With so many variables in Athens, the challenge for the G20 of putting a tangible plan proved over powering.

The prime minister refused to concur, however, saying that "progress has been made with the IMF and the agreements made at last week's European Summit in Brussels."

Cameron confirmed that Britain itself would aid the IMF but refused to speculate as to why other countries had not followed suit. Although there will not be a parliamentary vote he also said that the fund will not simply be used as a bailout fund for the Eurozone. "Britain's growth will depend on a strong export market. We need our international friends to be standing on their feet and not on the floor."

President Barack Obama, facing problems of his own at home and could have done without two days in Europe, put a brave face on saying: "We have been put back by the developments in Greece over the last 24 hours. But I am confident that Europe will be able Europe will be able to deal with the problems."

He added that Europe faces a "torturous" system of bureaucracy which had contributed to the problems of fixing the eurozone crisis. "There are just a lot of institutions here," he said.