Bulgarian PM Sets for Brussels for EU Debt Crisis Summit

Bulgaria in EU | October 26, 2011, Wednesday // 14:28|  views

Last Friday, the Eurozone approved the next tranche of Greek bailout loans. File photo

Bulgarian Prime Minister, Boyko Borisov, is traveling to Brussels Wednesday to attend the emergency summit of the EU leaders, who will attempt one more time to tackle the debt crisis and rescue the Eurozone.

Despite stated firm intentions to find a final solution, the outcome remains unclear.

The leaders are facing three crucial decisions aimed at taming financial markets and fears of spreading the recession across the Old Continent.

They are: forgiving Greece's debt in order to avoid the country's bankruptcy with banks having to agree on "haircuts" of up to 50%-60%, compared to the initial 20%; recapitalizing European banks with EUR 100 B (an issue the EU Finance Ministers already ironed out), and upping twice the special fund for troubled economies i.e. a European financial stability mechanism.

The latter has to grow from the current EUR 440 B to 1 T in warranty funding for rescuing, if needed, Greece, Ireland, and Portugal. In addition to EU leaders, it depends on the decision of the German Bundestag, which, hours before the meeting, is yet to give green light to Chancellor, Angela Merkel to back it.

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Tags: Eurozone, tranche, Greek, greece, bailout, loan, loans, bank, losses, debt, summit, EU leaders, financial, crisis, Bundestag, Angela Merkel, Prime Minister, Boyko Borisov, ireland, Portugal

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