Tony Czuczka and Simon Kennedy
July 19, 2011
Germany said it’s confident that European leaders will reach agreement on funding a second Greek bailout at a July 21 summit, as investors sell Spanish and Italian bonds on concern that the crisis is spreading.
“We must master this challenge,” Steffen Seibert, Chancellor Angela Merkel’s chief spokesman, said in Berlin today. “The way the chancellor sees it, the specific meeting this Thursday is about agreeing precisely on the main points of a new program for Greece, with all relevant details.”
European leaders plan to meet for the second time in a month to revamp their debt crisis-fighting strategy, aiming to break a deadlock that has spooked investors and prompted the International Monetary Fund to warn of contagion. European Central Bank President Jean-Claude Trichet reiterated opposition to any Greek debt restructuring in comments published yesterday.
European Union President Herman van Rompuy last week asked government chiefs to meet on July 21 in Brussels to discuss “the financial stability of the euro area as a whole and the future financing of the Greek program.” Among topics for the talks is a potential overhaul of the 440-billion euro ($618 billion) rescue fund to enable Greece to better pay its bills.