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EU leaders agree on outline of new `grand bargain` to save euro
Date 24/10/2011 17:28  Author webmaster  Hits 833  Language Global
• 24 OCT 2011

By Sarah Collins and Donal O'Donovan | Irish Independent

EU leaders have promised there will be a comprehensive deal to save the euro this week after Taoiseach Enda Kenny warned "the world is watching what we do".

It comes after a self-imposed deadline for a solution passed without a deal last night.

German chancellor Angela Merkel said some progress was made during a series of talks in Brussels over the weekend in which leaders sketched the outline of a grand bargain they intend to finalise on Wednesday.

The can was kicked down the road into this week because of a Franco-German spat over fundamental elements of the deal, including a move to force Greek bondholders to take bigger losses as part of a second bailout package, and how to leverage more money from the eurozone's €440bn rescue fund.

France is wary of imposing bigger losses on investors over fears that its banks might not be able to afford them, while Germany wants to save taxpayers from having to fund a larger chunk of the second rescue.

Mrs Merkel said she and French president Nicolas Sarkozy were "speaking with one voice" and had made a "major contribution" to the negotiations.

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