Business, Finance & Economics

EU Finance leaders cancel meeting


EU finance ministers canceled a meeting for tomorrow regarding the euro zone debt crisis.



European finance ministers canceled a meeting to target the euro zone debt crisis Tuesday, sparking fears that governments need more time to wrap up a deal as parts of the package still remain in doubt, the Wall Street Journal reports.

The meeting scheduled for early Wednesday, ahead of an evening gathering of European leaders, was intended for finance ministers to sign off on agreements that now seem out of reach, WSJ reports. The European leaders meeting is still in effect, however.

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Finance ministers canceled the Tuesday meeting because the bank-recapitalization issue can’t be decided before other elements of the rescue package, a source told Bloomberg. The meeting was called off by the Polish government only hours after it was announced, the New York Times reports. The Polish government, which holds the six-month rotating EU presidency, did say in an emailed statement that the European leaders’ summit will still be held.

An agreement to expand the euro-area rescue fund and determine the size of bondholder write-downs on Greek debt and recapitalizing banks will hopefully happen at the European leaders’ summit at 6 p.m. tomorrow.

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Any other explanations were not given for the meeting cancelation, but it became clear that 10 EU nations that don’t use the euro, especially the United Kingdom, don’t want to pre-approve any measures that will still be the subject of negotiation when the leaders of 17 euro zone nations meet on Wednesday, WSJ reports.

"We are working on solid and convincing solutions to deliver [Wednesday] a comprehensive package for stability and growth. It is time to end the uncertainty," said European Commission President José Manuel Barroso, WSJ reports.