Bloomberg News

EU Talks With Banks ‘Need Some Taking Care Of,’ Juncker Says

October 26, 2011

(For more on the debt crisis, see EXT4.)

Oct. 26 (Bloomberg) -- European Union negotiations with banks on bondholder writedowns as part of a second Greek aid package “will need some taking care of today” before a summit decision is possible, Luxembourg Prime Minister Jean-Claude Juncker said.

“They’re still ongoing,’’ Juncker told reporters today in Brussels. “One should only comment on these negotiations when they’re done.”

The talks on the size of bondholder losses in the new bailout for Greece are part of EU leaders’ efforts to reach a comprehensive crisis-rescue package that also includes bolstering the euro-area rescue fund and recapitalizing banks.

‘‘We have to take resilient decisions today,’’ Juncker said about the overall package. ‘‘It probably won’t be possible to formulate every issue to the very last detail, but the overall direction has to be ultra-clear by tonight.’’

Juncker also said the EU leaders are looking for “considerable” measures from Italy to cut its deficit.

“Our Italian friends know very well that we have to expect to be told tonight that there will be considerable, structural consolidation efforts on the part of Italy,” Juncker told reporters today in Brussels as he arrived for a meeting of leaders.

To contact the reporter on this story: Stephanie Bodoni in Luxembourg at sbodoni@bloomberg.net

To contact the editor responsible for this story: Jones Hayden at jhayden1@bloomberg.net


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