EU Commission urges Europe to act on Greece

Reuters
October 12, 2011

Europe needs to take decisive action on Greece, the head of the EU's executive said on Wednesday, outlining a broad plan to contain the crisis threatening the euro as officials said banks faced heavier losses on their holdings of Greek debt.

The warning, delivered by Jose Manuel Barroso, President of the European Commission, is intended to galvanize France and Germany, the bloc's main powers, into action when they meet on October 23 under international pressure to limit the damage the debt crisis risks inflicting on the world economy.

"Doubts and uncertainties over Greece's future jeopardize stability in the entire euro area and beyond," said Barroso. "The time has come to remove these doubts."

The head of the EU's executive outlined a five-point proposal to tackle the economic crisis, spanning higher capital hurdles for banks and extra powers for the Commission to intervene in national budget setting.

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