A day after G20 leaders wrapped up negotiations in Paris and came out with a five-point plan that could resolve their economic problems; Germany's top officials announced that the Oct. 23 summit in Brussels may not produce positive results that most EU nations are expecting.

The euro plummeted indicating that European nations may not even be close to coming up with a solution to the sovereign debt crisis.

Bloomberg reported that the "euro went down by one percent to $1.3738 after rising to $1.3914, the highest level since Sept. 15. It moved forward by 3.8 percent last week, the most since March 2009. The shared European currency fell 1.5 percent to 105.55 yen today after touching 107.68, the highest level since Sept. 9."

The Australian currency also went down by more than one U.S. cent following the declaration by German Finance Minister Wolfgang Schaeuble that it was not possible for the EU to produce an immediate and lasting solution to the economic woes confronting Europe, according to the Weekly Times.

Two months ago, global economies all agreed that it was necessary for them to "strengthen policy coordination to pursue a common response to the worsening crisis in the Euro zone and reduce market upheavals."

The Business Spectator said Germany does not favour proposals from the French government to direct the European Financial Stability Facility into a private bank.

Observers believe that majority of EU leaders would prefer to compel banks to recapitalize as part of the all-inclusive package to counter the mounting debt crisis which is damaging the stability of the euro.

Meanwhile, European Commission President Jose Manuel Barroso has reiterated the commission's proposal to face the Eurozone crisis by using the 440-billion-euro ($A594 billion) European rescue fund to keep the crisis from spreading from peripheral countries such as Greece to core economies such as Spain or Italy, according to the Business Spectator.

It is widely believed that EU states are not in conformity to increase the size of the fund's but that several technical solutions were being floated to increase the fund's firepower.

"The fund's extensiveness could be leveraged not necessarily by turning the fund into a bank but by using existing capital as a guarantee, Barroso stated.