BRUSSELS (Dow Jones)--European leaders are working on a "comprehensive package" to restore confidence in euro-zone debt markets and in the region's banks, European Council President Herman Van Rompuy said Monday ahead of a key summit.
"For weeks the commission and I have already been working on a comprehensive package to create more confidence in the financial sector and in the sovereign bonds of countries under pressure," he said alongside President Jose Manuel Barroso, president of the European Commission, the executive branch.
"Guaranteeing financial stability is the key to restoring the economy," said Van Rompuy, who will preside over Sunday's meeting of leaders from the 27-nation European Union.
Barroso lifted hopes for the Oct. 23 meeting despite a warning Monday from the German government against expectations the euro zone crisis will be solved in one weekend.
"I believe the European Council of this weekend will be critically important," Barroso said.
Leaders hope to break the deadlock on a number of key issues including a second Greek bailout package, a plan to recapitalize the banks and a possible leveraging of the region's bailout fund.
Van Rompuy said the private sector contribution to the proposed second Greek bailout package is an "exceptional" measure, despite Barroso's proposal last week to move up the launch of the bloc's permanent bailout mechanism to mid-2012. Asking private bond holders to share the pain of bailing out troubled euro-zone countries is a key feature of the new vehicle.
Van Rompuy and Barroso said that euro zone nations with high debt burdens cannot walk away from austerity efforts and other reforms to reduce the imbalances between the stronger and weaker economies in Europe.
However Van Rompuy said there is a need for "growth-friendly" austerity in the EU and that efforts to direct EU economic assistance towards troubled economies are important.
Barroso reiterated his call for a tax on financial transactions, also saying "we need growth in Europe."
"We are doing everything we can to mobilize and frontload structural funds."
Barroso went on to say the commission is not seeking to punish the banks and it wants a strong financial sector in the EU. But he accused the banks of behaving irresponsibly in the past and said some of the financial sector's behavior was of a "criminal nature."
The EU is set to propose this week minimum punishments for insider trading, according to a document seen by Dow Jones Newswires on Friday.
Source: http://online.wsj.com
"For weeks the commission and I have already been working on a comprehensive package to create more confidence in the financial sector and in the sovereign bonds of countries under pressure," he said alongside President Jose Manuel Barroso, president of the European Commission, the executive branch.
"Guaranteeing financial stability is the key to restoring the economy," said Van Rompuy, who will preside over Sunday's meeting of leaders from the 27-nation European Union.
Barroso lifted hopes for the Oct. 23 meeting despite a warning Monday from the German government against expectations the euro zone crisis will be solved in one weekend.
"I believe the European Council of this weekend will be critically important," Barroso said.
Leaders hope to break the deadlock on a number of key issues including a second Greek bailout package, a plan to recapitalize the banks and a possible leveraging of the region's bailout fund.
Van Rompuy said the private sector contribution to the proposed second Greek bailout package is an "exceptional" measure, despite Barroso's proposal last week to move up the launch of the bloc's permanent bailout mechanism to mid-2012. Asking private bond holders to share the pain of bailing out troubled euro-zone countries is a key feature of the new vehicle.
Van Rompuy and Barroso said that euro zone nations with high debt burdens cannot walk away from austerity efforts and other reforms to reduce the imbalances between the stronger and weaker economies in Europe.
However Van Rompuy said there is a need for "growth-friendly" austerity in the EU and that efforts to direct EU economic assistance towards troubled economies are important.
Barroso reiterated his call for a tax on financial transactions, also saying "we need growth in Europe."
"We are doing everything we can to mobilize and frontload structural funds."
Barroso went on to say the commission is not seeking to punish the banks and it wants a strong financial sector in the EU. But he accused the banks of behaving irresponsibly in the past and said some of the financial sector's behavior was of a "criminal nature."
The EU is set to propose this week minimum punishments for insider trading, according to a document seen by Dow Jones Newswires on Friday.
Source: http://online.wsj.com
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