The meeting between the FIA and FOTA has ended with neither side backing down, nor a compromise being reached. Max Mosley said, in a very brief interview that 'friendly' discussions with the teams had resulted in no resolution.
FOTA are now meeting to discuss their response to the FIA over the £40 million budget cap. With Ferrari confirming they have lodged legal action against the FIA, through a French court to block the 2010 rules from being implemented.
"During the meeting it became apparent that Ferrari have made an application to the French courts to apply for an injunction to stop us doing what we want to do," Mosley said.
"So that is where the situation rests as far as Ferrari is concerned."
When asked about the threat of a handful of major teams leaving the sport Mosley replied: "I'd be very surprised in the end if they do," but added "when people start bringing proceedings it becomes very difficult to negotiate with them."
Mosley also stated that he and the FIA are not willing to back down over the £40 million budget cap for 2010, saying: "The regulations are as published. We have explained that we want everyone to race under the same regulations. We have explained that we would like all of the teams to come in under the cost cap and that is what they have gone off to consider.
"We have said that we cannot see why anyone wouldn't want to operate under the cost cap, and it would mean a gradual relaxation of the technical regulations—which all the engineers would want. We said in the end the choice was between intellectual freedom and financial constraint, or intellectual constraint and financial freedom—which is what they have had up until now.
"We have pointed out, and it is something the engineers have said, that current F1 consists of endless refinement at enormous expense and we want to move away from that and have invention and creativity, but we can only do that if we restrict the cost—because if we have unrestricted cost nobody would be able to afford it.
"I think some of the teams agree with that idea, and some don't, and they have gone away to discuss it."
The meeting currently taking place between FOTA members is to find a way of spending less, without having to operate under a two-tier system.
Mosley confirmed that FOTA are discussing different ideas: "The teams have gone off to see if they can come up with something better than the cost cap."
The F1Times will bring you all the news from the FOTA meeting...