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IPFS News Link • Bailouts

EU hopes to seize debt crisis initiative at summit


After months of battling to put out fires, including a 110 billion euro bailout for Athens and an 85 billion euro aid package for Dublin, EU leaders will discuss changing the EU's treaty to create a permanent crisis-resolution mechanism from 2013, and may look at enlarging their existing crisis fund.

The two-day summit comes as market pressure on the sovereign debt of peripheral euro zone states has fallen marginally before year-end, but EU officials are conscious that any failure to take decisive action could be interpreted as weakness, with the threat of further bond market fallout early next year.