EU crisis talks in limbo after crucial summit is cancelled
The crucial summit of Europe’s finance ministers to thrash out the details of a eurozone rescue has been dramatically cancelled, leaving any solution to the crisis in limbo.
By Louise Armitstead
25 Oct 2011
The 27 finance ministers, including Chancellor George Osborne, were due to meet this morning to prepare an “ambitious and comprehensive response” to the problems stalking the eurozone.
However, while European heads of state are still due to meet as scheduled at 6pm, the cancellation of the finance ministers’ meeting implied a detailed solution remained elusive.
The leaders are expected to announce an agreement that will increase the size of the European Financial Stability Facility (EFSF) to €1 trillion; produce a fresh Greek bail-out that includes a bigger hit for bondholders; and commit to inject €110bn into Europe’s banks.
But vital details are unlikely to be ready by Wednesday night. For example, the leaders are expected to announce two potential plans to boost the EFSF, while the haircut on Greek bonds is likely to be presented as a range of between 40pc and 60pc, rather than a set figure.
Officials said the only hope for a miracle breakthrough lay with an emergency meeting on Tuesday night of the euro working group, the top European civil servants.