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Welcome to our continuing coverage of the eurozone crisis. Today’s summit in Brussels could, in years to come, be viewed as a turning point in the eurozone crisis. Or, it could be just one more extended meeting at which policymakers tried – and failed – to agree on a plan big enough to calm the storm in Europe’s sovereign debt markets. We’ll bring you news and commentary until the summit begins.

All times are London time. By Esther Bintliff and David Crouch on the world news desk in London, with contributions from FT correspondents around the world.

17.10: The summit is about to begin and we’re continuing in a fresh post: Eurozone crisis: the evening session.

16.45: A reminder of the timetable for tonight:

  • 17.00 – 18.00 (London time): the leaders of all 27 EU member states meet
  • 18:15 onwards: the summit of eurozone leaders begins

Statements and possibly a press conference are expected when the meetings close, but they will likely continue long into the night.

Stanley Pignal, Brussels correspondents, reports:

“EU leaders have been arriving for the first of tonight’s two meetings, which will involve all 27 member states before the eurozone-only leaders convene afterwards.

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Euro banknotes placed on a map of Greece. Photo: Dado Ruvic, ReutersWelcome to our live coverage of the eurozone crisis, by Esther Bintliff and John Aglionby on the world news desk in London with contributions from correspondents from around the world. All times are London time.

Hopes for the unveiling of a “comprehensive plan” to resolve the eurozone crisis at this weekend’s summit of European leaders have been squashed this afternoon. “No agreements” will be made, officials told the FT, until a second summit, which will probably take place on Wednesday. Read more

 

Welcome to our continuing coverage of the eurozone crisis. All times are London time.

Curated by Esther Bintliff and John Aglionby on the world news desk in London, with contributions from FT correspondents around the world.


19.20: We’re wrapping up the live blog now but we’ll be back tomorrow for more fun and games – including, notably, the European Central Bank’s rate announcement and the swansong press conference of Jean-Claude Trichet. In the meantime, do follow us on twitter – we’re @ftworldnews – and of course at ft.com

19.15: How does one go about recapitalising a continent’s banks? Patrick Jenkins, the FT’s banking editor, and Gerrit Weismann, correspondent in Berlin, have put their heads together and come up with a very nice Q&A, which tells you how big the hole is, how recapitalisation might happen and what type of capital will be raised:

Consensus is now building in the markets that a European form of the Troubled Assets Relief Programme, or Tarp, that underpinned mandatory US bank recapitalisations in the wake of the 2008 crisis, is the best way to restore confidence…

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Welcome to day four of our rolling coverage of the eurozone crisis.

All times are London time. Curated by Esther Bintliff and John Aglionby on the world news desk in London, with contributions from FT correspondents around the world.

19.20: We’re wrapping up the blog here, but many thanks for reading (and commenting). You can follow the rest of our coverage at ft.com/world and on twitter, @FTWorldNews

19.15: What are the chances of Greece being able to meet its commitment to cut the general government deficit from €24.1bn to €17.1bn this year?

It’s an incredibly tough task – equivalent to about 7.5 per cent of gross domestic product.

Kerin Hope, our Athens correspondent, has taken a good look at the numbers:

Greece faces a desperate catch-up effort to achieve this year’s budget targets after reporting the central government deficit widened an annual 22.2 per cent for the first eight months of this year.

Talks with international lenders, which resumed on Thursday, are intended to wrap up details of the 2012 budget and of structural reforms to reduce public sector spending so that Athens can receive its next €8bn slice of bail-out funding, according to Greek officials.

But the current shortfall in this year’s budget indicates new measures may be needed…

Read the full story hereRead more


Welcome to our rolling coverage of the eurozone crisis.
All times are London time. Curated by Esther Bintliff and John Aglionby on the world news desk in London, with contributions from FT correspondents around the world.

19.23: We’re winding up the rolling blog for today but thanks for reading, and do follow the rest of our coverage at ft.com/world. We’ll be back tomorrow to cover the crucial German parliamentary vote on expanding the EFSF (will Merkel preserve her absolute majority?) aswell as any other eurozone shenanigans…

19.21: Earlier we referred to some comments made by Angela Merkel in an interview with Greek TV late last night. Here’s the full story, from which:

Angela Merkel, German chancellor, has warned Greece that a €109bn rescue package, approved by the 17 eurozone leaders in July, may have to be reviewed if Athens fails to meet deficit reduction targets agreed with the European Union and International Monetary Fund.

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Welcome to the second day of our rolling coverage of the eurozone crisis. All times are London time. Curated by Esther Bintliff and John Aglionby on the world news desk in London, with contributions from FT correspondents around the world.

20.00: We’re wrapping up the blog for today but we’ll be back bright and early tomorrow. In the meantime, you can follow the rest of our coverage at ft.com/world

19.52: BREAKING The FT’s Peter Spiegel and Quentin Peel report that a split has opened in the eurozone over the terms of Greece’s second €109bn bail-out with as many as seven of the bloc’s 17 members arguing for private creditors to swallow a bigger write-down on their Greek bond holdings, according to senior European officials.

The divisions have emerged amid mounting concerns that Athens’ funding needs are much bigger than estimated just two months ago. They threaten to unpick a painfully negotiated deal reached with private sector bond holders in July.

Full story hereRead more


As fears of a possible Greek default continue to sway financial markets, time is running short for policymakers to agree a solution to the eurozone crisis. The FT will be running live coverage of the latest developments here on our foreign affairs blog, The World.

All times are London time. Curated by Esther Bintliff, assistant Europe news editor in London, with contributions from FT correspondents around the world.

19.30: We’re wrapping up the blog for today, but we’ll be back on Tuesday to cover the latest developments from Greece – where a parliamentary vote is due to take place on the unpopular new property tax – and Germany, where the Greek prime minister is due to meet with chancellor Angela Merkel. In the meantime, please follow the rest of our coverage at ft.com/world

19.18: There was a teensy bit of good news today – or not so bad news. German business confidence, as measured by the Munich-based Ifo institute, fell in September – but by far less than in August. That counts as a positive in these turbulent times…

19.10: The European Central Bank is likely to significantly extend its provision of liquidity to banks next week as it seeks to counter the escalating eurozone debt crisis, reports Ralph Atkins, our Frankfurt bureau chief. But he says it’s still an open question whether the ECB will cut official interest rates as well.

18.55: Donal O’Mahony, global strategist at Davy Capital Markets, points out that the “current convulsions in global markets and economies offer some depressing comparisons to the events of 2008″:

“Once again, nerves are being shredded by the perception of bank solvency and liquidity risks, albeit this time with balance-sheet concerns more focussed on “toxic” sovereign than credit exposures… Once again, the spectre of another calamitous debt default now hangs heavily in the air.”

O’Mahony argues that while the eurozone’s crisis resolution efforts have thus far been hampered by “deep ideological conflicts”, a “more decisive policy approach may finally prevail”, given the dangerously high stakes: namely, the “entire fate of the single currency ideal hanging in the balance”.

18.40: Moves to save the euro have come and gone but it now looks like policymakers recognise the urgency of addressing the problems underlying the eurozone structure. In this video, Lex’s Vincent Boland and Nikki Tait discuss what needs to be done and whether we’ve reached a turning point.

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