All options open as EU leaders begin talks
A European Union leaders? summit aiming to produce a plan to tackle the eurozone?s debt crisis is underway in Brussels with Prime Minister George Papandreou calling for decisive action and German Chancellor Angela Merkel suggesting there will be no final decision today.
?We are preparing today the decisions for Wednesday,? Merkel said in reference to a eurozone leaders meeting due to take place next week.
?That?s important because we?re dealing with a technically complex process, such as how the EFSF functions. That?s why we have to work very carefully; that?s why we have to consider all possible details. That?s why today one shouldn?t expect decisions of the Eurogroup but Wednesday,? she said.
?Everyone knows that we have to treat things very well and such that solutions will come from it all,? Merkel said. ?That?s why today I think we?ll have very concentrated and important discussions.?
The leaders ?have to discuss, for example, how we want to shape the coordination of the eurogroup on economic and financial subjects in the future,? she said. ?We need more Europe and stronger intervention powers and treaty changes mustn?t be a taboo here.?
European finance ministers held 10 hours of talks on Saturday but did not finalize a plan to recapitalize Europe?s banks and did not agree on the size of haircut that holders of Greek debt should accept on their debt. The strengthening of the European Financial Stability Fund (EFSF) has also not been agreed yet.
Ahead of Sunday?s meeting, Papandreou urged the EU leaders to agree on a common solution.
“It’s been proven now that the crisis is not a Greek crisis,» said Papandreou in comments to the press. «The crisis is a European crisis. So now is the time that we as Europeans need to act decisively and effectively.”
“Greece has proven again and again that we are making the necessary decisions to make our economy sustainable and make our economy more just,”
A follow-up summit on Wednesday is expected to finalise a plan, by recapitalising banks, settling details of a new rescue of Greece and beefing up the EU’s bailout fund.
“We are a proud people,» Papandreou added.
“We are a proud nation and we demand that respect of what we’re doing. And we are doing what we need from our side, the responsibility that we are taking on, with great pain, to make Greece a different country.”
