EU leaders' measures to contain debt crisis

EU leaders are aiming to draw up comprehensive measures to contain Europe's credit woes at a summit scheduled this coming Sunday and Wednesday.

The leaders will discuss whether to further bolster the European Financial Stability Facility following an agreement to expand the fund by eurozone nations earlier this month.

They will also talk about ways to boost the capital bases of major eurozone banks, which have been suffering from price drops in some countries' government bonds.

As Greece's fiscal rehabilitation is behind schedule, the EU leaders are also expected to debate a review of the additional bailout package agreed upon in July. They may ask private banks holding sovereign debt to bear more burden.

European credit concerns now pose the biggest threat to the global economy. The EU leaders hope to present comprehensive measures at the Group of 20 summit meeting early next month in order to win support from other countries.

Attention is focused on to what extent EU leaders will be able to decide on the details of the measures.

Friday, October 21, 2011 06:44 +0900 (JST)