“European political chiefs paved the way for finance ministers to wrangle a rescue for Cyprus today as the euro area seeks progress toward a bailout that’s been batted about for nine months.
“I can’t imagine that we’ll let the weekend go by without resolving the Cyprus problem,” Luxembourg Prime Minister Jean- Claude Juncker said early today after euro leaders met midway through a two-day European Union summit in Brussels. The EU gathering ends today with a 27-nation discussion of foreign policy, to be followed by a euro-area ministers’ meeting.
Cyprus requested a bailout in June and a deal on aid has been delayed by debate on how to cut the island nation’s debt. The previous government had rejected key demands by the so- called troika that oversees euro-area bailouts. Yesterday’s summit was the first for new President Nicos Anastasiades.
Finnish Prime Minister Jyrki Katainen said finance chiefs didn’t receive specific instructions from leaders ahead of today’s talks on Cyprus. He reiterated that any deal must offer a path to sustainable debt and include a role for the International Monetary Fund.
“We need IMF in the package because of two reasons,” he said. “We need their know how” and “of course it’s better if there are more payers than just the euro-area countries.”
Leaders yesterday welcomed Anastasiades, elected last month, who pledged “decisive” action to comply with whatever terms are agreed on for his country, the fifth euro-area nation to seek aid. Katainen said yesterday the new government has “more credibility” than its predecessor.
