23 October 2011 Last updated at 12:50Cameron joins EU financial crisis talks in Brussels
UK Prime Minister David Cameron and President of the European Parliament Jerzey Buzek arrive in Brussels to discuss the eurozone's debt crisis
European leaders have begun a day of talks aimed at resolving the region's debt crisis and keeping another recession at bay.
UK Prime Minister David Cameron has joined 26 leaders in Brussels amid fears that problems in Greece threaten to spread to Italy and Spain.
German Chancellor Angela Merkel said she believed the leaders will devise a plan by Wednesday to protect the euro.
A deal on how to recapitalise banks was reached by ministers on Saturday.
UK Chancellor of the Exchequer (finance minister) George Osborne said Britain would keep up the pressure to resolve the crisis.
Following the morning meeting of all 27 EU leaders, the 17 countries that use the euro will hold a special summit of their own in the afternoon. This will then be followed by another meeting on Wednesday.
Before the morning meeting, Greek Prime Minister George Papandreou urged Europe to "act decisively and effectively" to contain the troubles.
"It's been proven now that the crisis is not a Greek crisis," he told reporters. "The crisis is a European crisis. So now is the time that we as Europeans need to act decisively and effectively."
Shortly before the summit began, Italy's Prime Minister Silvio Berlusconi held private talks with EU President Herman Van Rompuy, Mrs Merkel, and French President Nicolas Sarkozy.
There is concern that budget cuts passed by the Italian parliament do not go far enough.
The BBC's Europe correspondent Chris Morris said the summit was an indication of how much still needs to be decided.
He said: "Everyone now acknowledges that previous decisions on a second bail-out for Greece are insufficient.
Continue reading the main story“Start Quote
End QuoteIf you don't want to be scared, turn away now. Italy needs to borrow €250bn next year just to refinance its existing debts. ”
Robert Peston Business editor, BBC News
"Far more of its debt will have to be written off, and that means banks and other financial institutions will have to take a much bigger hit. But how much debt, and how big a hit?"
'Jobs and growth'The provisional deal agreed by finance ministers will see banks raise more than 100bn euros (£87bn) in new capital to shield them against possible losses to indebted countries.
It is conditional on a wider accord, including a write-down of Greek debt.
BBC business editor Robert Peston said the 100bn euros agreed in the deal will be provided to banks by commercial investors, national governments and the EU's bailout fund.
Speaking after the 10-hour meeting on Saturday, Mr Osborne said: "Britain will keep up pressure in the next few days to a comprehensive package to resolve the European crisis and to make sure that we get jobs and growth."
Debt-laden Greece has been bailed out - twice - along with the Irish Republic and Portugal.
The eurozone is working on a third package for Greece, as well as a solution that could help the much bigger economies of Spain and Italy, which are faltering.
Sunday 23 October 2011
BBC News - Cameron joins EU financial crisis talks in Brussels
via bbc.co.uk
