Oct. 26 - European leaders agreed to boost the region's bailout fund to one trillion euros, but details still have to be decided. At the same time, a framework for re-funding banks was agreed upon, according to EU sources. Conway G. Gittens reports.
It's night time in Belgium and according to sources, European politicians appear close to finding a way out of the darkness of a debt crisis. Here's an optimistic UK Prime Minister David Cameron. SOUNDBITE: BRITISH PRIME MINISTER DAVID CAMERON (ENGLISH) SAYING: "Well, we made some good progress tonight. It's very much in Britain's interest that we sort out these problems and solve this crisis." European leaders have agreed to boost the size of the Eurozone bailout fund fourfold to one trillion euros, the sources say. There's also a framework on what to do about the banks saddled by bad sovereign debt. Leaders agree banks need additional capital in order to withstand more potential debt writedowns, agreeing to raise capital requirements to 9 percent by the end of the next year. Polish Prime Minister Donald Tusk. SOUNDBITE: POLISH PRIME MINISTER DONALD TUSK (ENGLISH) SAYING: "And we also adopted certain elements of the way we should proceed to attain this goal. An emotional element during this debate, was the fact of making it clear that this is an exceptional circumstance and not permanent element." But even that hinges on Greece getting the next bailout payment and avoiding a default, which would put the debt crisis back at square one. Lithuanian President Dalia Grybauskaite. SOUNDBITE: LITHUANIAN PRESIDENT DALIA GRYBAUSKAITE (ENGLISH) ARRIVING AND SAYING: "Of course the main thing now is restructuring all the banking sector, to stabilize and to give the guarantees that we are all behind it. So the Greek package will be negotiated now and to go with the banking sector and representatives of bank. But we 27 give green light for negotiations to be finalized. And now it's all about technicalities." Technicalities also have to be worked out when it comes to HOW to boost the Eurozone bailout fund. According to a draft statement obtained by Reuters, one idea is to create a special investment vehicle that would allow sovereign wealth funds like China and the Middle East to buy in. A final decision is not expected until a November meeting. Conway Gittens, Reuters