European leaders will be in talks pretty much non stop over the next few days as they hammer out a plan to fix the eurozone debt crisis.
The flurry of "consultations" comes ahead of a highly-anticipated summit of European Union government leaders on Sunday in Brussels. This was supposed to be the defining moment with a clear solution
The flurry of "consultations" comes ahead of a highly-anticipated summit of European Union government leaders on Sunday in Brussels. This was supposed to be the defining moment with a clear solution
European leaders express confidence deal can be reached by Wedneday; using ECB to leverage EFSF has been ruled out, and no agreement yet on the other options for increasing EFSF firepower
- French Pres Sarkozy: confident a deal can be reached, must find a solution by Wednesday summit.
- German Chancellor Merkel: we are making progress; expect ambitious decisions will be agreed upon by Wed. Deal is dependent on getting banks to agree to larger haircut on Greek debt.
- EU's Barroso: a comprehensive agreement is within reach.
- Dutch Fin Min De Jager: have ruled out French plan to use ECB funding to leverage the EFSF. Still "big differences" on whether to pursue the EFSF insurance scheme or the alternative, a special IMF fund that could attract investments from emerging economies.
- Greece Fin Min: Ministers working off of the July 21 framework for an enhanced deal. Greece is not the euro zone's biggest problem.
- Spain Fin Min: Bank Tier 1 capital ratio at 9% is reasonable.
- Finland PM Katainen: Should only use EFSF for emergency situations. Would not agree to transform EFSF into a bank.
- Swedish Fin Min Borg: Greek debtholders must take a substantial haircut. EFSF insurance scheme not enough to solve the problem. Have the basis for an agreement on larger bank capital ratios.
- UK Fin Min Osborne: have reached agreement on strengthening European banks [doesn't comment on specifics].
- Polish Fin Min: Need to build a significant and credible firewall to prevent the spread of contagion from one sovereign to another.
- French Pres Sarkozy: confident a deal can be reached, must find a solution by Wednesday summit.
- German Chancellor Merkel: we are making progress; expect ambitious decisions will be agreed upon by Wed. Deal is dependent on getting banks to agree to larger haircut on Greek debt.
- EU's Barroso: a comprehensive agreement is within reach.
- Dutch Fin Min De Jager: have ruled out French plan to use ECB funding to leverage the EFSF. Still "big differences" on whether to pursue the EFSF insurance scheme or the alternative, a special IMF fund that could attract investments from emerging economies.
- Greece Fin Min: Ministers working off of the July 21 framework for an enhanced deal. Greece is not the euro zone's biggest problem.
- Spain Fin Min: Bank Tier 1 capital ratio at 9% is reasonable.
- Finland PM Katainen: Should only use EFSF for emergency situations. Would not agree to transform EFSF into a bank.
- Swedish Fin Min Borg: Greek debtholders must take a substantial haircut. EFSF insurance scheme not enough to solve the problem. Have the basis for an agreement on larger bank capital ratios.
- UK Fin Min Osborne: have reached agreement on strengthening European banks [doesn't comment on specifics].
- Polish Fin Min: Need to build a significant and credible firewall to prevent the spread of contagion from one sovereign to another.
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