European Union leaders have reached an agreement on the broad outline of a comprehensive strategy to resolve the euro-zone debt crisis, including a substantial write-down of Greece’s debts.

The leaders of the 27 EU nations attended a crisis summit in Brussels over the financial troubles in euro-zone nations, and held a separate meeting later of the 17 nations that use the single currency — euro.

They made significant progress on some of the most contentious issues —— waiving of Greek debts, recapitalisation of banks which will suffer losses on their Greek bonds and an “effective implementation” of the euro-zone crisis fund, the European Financial Stability Facility (EFSF), the German Chancellor, Ms Angela Merkel, said.

However, some details still remain to be worked out and a deal on a comprehensive package of measures to avert the escalation of crisis could be concluded when the EU leaders convene again in three days, she said.

“The technical work is now in full swing” and France and Germany have made important contributions towards that, she told a joint press conference with the French President, Mr Nicolas Sarkozy.

She also denied that there were any differences between the two countries, especially on the EFSF, and said their decision to convene a second summit on Wednesday was taken because of the “technical complexity” of the issues involved.

Mr Sarkozy expressed similar views and emphasised that without a close cooperation between Berlin and Paris nothing will move forward in Europe.

“It is a part of the foundation of the European Union that even during crisis Germany and France speak with one voice,” he said.

Related Topics