merkel sarkozy and monti after press conference
Image: AP/Michel Euler, Pool

EU leaders met until the wee hours of the morning today in the first of a series of meetings that continue today.
So far, euro area countries appear to be making progress towards a "fiscal compact" that would pave the way for financial integration in the eurozone.
 Meanwhile, the U.K. looks continually more isolated from any involvement in the process as the only country to be left off the most recent draft (via @finansakrobat) of the statements that came out of the EU summit today.

Here's the rundown of what leaders' have decided to do so far:
  • Enact a "fiscal compact" replete with balanced budget stipulations and enforcement mechanisms to control spending.
  • Annual structural deficits for sovereigns are not to exceed 0.5% with a firm ceiling of 3%, after which economic sanctions would go into effect.
  • Commit to working towards a "common economic policy," whatever that means.
  • Rapid implementation of EFSF leveraging plans, via first loss guarantees for bondholders on issuances of new debt and a common investment fund to be supported by the IMF and other foreign investors.
  • Thrown out initial private sector involvement clauses initially enshrined in plans for the European Stability Mechanism (Finland initially had a bone to pick with this).
  • Leaders will consider expanding the €500 billion ($667 billion) in funding available to the ESM in March 2012.
  • The ESM will now hold an emergency clause that will allow it to act with the approval of only 85% of members lending, and will go into effect when it has the approval for 90% of its funds.
  • The EFSF and ESM will run simultaneously from the time the ESM goes into effect (likely next July) to the EFSF's expiration in mid-2013.
  • Decide in the next 10 days to lend up to €200 billion ($267 billion) in additional funding to the IMF in bilateral agreements.
Everyone except the U.K. appears to be on board with the plan, however since debates are currently taking place behind closed doors, we could see some alterations to this agreement before the day is out.
For some reason, everyone now appears to be waiting on the European Central Bank to do something more. But with bank reaffirming a €20 billion ($27 billion) cap on bond-buying according to Reuters, that seems somewhat far-fetched.