EU Summit flops. The ESM is still EUR500bn; it will not have a banking licence; they could not agree treaty change; they are looking at bilateral loans to IMF of ~200bn (which is too small to fix anything).
The fact that the ESM will not have a banking licence is most concerning. They can announce whatever size they like, but if it has to raise the money by issuing debt (which will crowd out the weaker Sovereigns), the real constraint is its ability to raise funds. This has already limited the effectiveness of the EFSF – it can’t get size done at good levels, so it cannot buy lots of peripheral debt.