October 23, 2011
European leaders started the 13th crisis summit in 21 months seeking a breakthrough over how to stamp out the Greece-led debt shock that threatens to tip the world into a recession.
Chancellor Angela Merkel of Germany, Europe’s dominant economy, played down the odds of an agreement today to beef up the euro bailout fund, cut Greece’s debt without triggering a default, shield banks from the fallout and insulate Italy and Spain from the turmoil.
“Today one shouldn’t expect decisions,” Merkel told reporters before the Brussels summit. She spoke of “a technically complex process” with the aim of forging a comprehensive strategy at the next summit in three days.
With President Barack Obama and Chinese Premier Wen Jiabao piling on the pressure, Europe’s room for maneuver narrowed after a report showed Greek finances worsening. Measures on the table include writedowns of as much as 50 percent on Greek debt, 100 billion euros ($139 billion) in fresh capital for banks and the pooling of two rescue funds to deliver as much as 940 billion euros to contain the crisis.
After meetings at EU offices, luxury hotels and a suburban Brussels nature park yesterday, the scene shifted to EU headquarters today for a session of all 27 EU leaders. It is slated to end around 3 p.m., to be followed by a meeting of the 17 euro leaders that will stretch into the evening.
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