Despite rumors that European leaders had reached an agreement on a rescue package for the euro, talks appear to be on the rocks. French President Nicolas Sarkozy left a Paris hospital, where his wife, Carla Bruni-Sarkozy, gave birth to their first child together, to fly to Germany. Sarkozy met with Chancellor Angela Merkel in Frankfurt, but the two left without speaking to reporters. Sarkozy’s comments about Germany’s reticence fueled doubts that a deal will be reached at the next meeting of leaders on Saturday. Instead of having a bailout fund that would guarantee bond issues, officials are reportedly considering a plan that would instead make governments borrow from the fund to guarantee only a portion of the bond issues. Sarkozy arrived at the hospital several hours after the birth, according to witnesses.
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