Emergency Summit Announced Over Euro Crisis

EU leaders are to assemble in Brussels on Wednesday to secure a last minute deal on the escalating crisis over the European banking crisis.

A number of arguments have developed between state leaders, especially between French President Nicolas Sarkozy and David Cameron, on how to handle further EU bailouts for troubled euro-using countries.

Currently, Greece is believed to be at serious risk of default, and their difficulties are causing major problems for Italy and Spain.

Meanwhile, the Italian government is becoming a focus of major concern after Silvio Burlisconi has proved unable to push through significant monetary reforms.

Before heading for Brussels, German Chancellor Angela Merkel faces a vote in parliament on increasing the bailout fund without involving more German taxpayers' money.

Among some of the measures already agreed is the provision that European banks must raise more than 100bn euros in new capital to prevent a meltdown in the case of a default; that the single currency's €440 billion bailout fund - will be given more "firepower"; and that lenders to Greece will be asked to agree to much deeper losses than the 21% write-off currently on the table.

Douglas Alexander MP, Labour's Shadow Foreign Secretary, has written to William Hague requesting clarification on the Government's position on Europe following the contradictory comments given by Cabinet members.

On Tuesday, Labour’s Shadow Foreign Secretary Douglas Alexander wrote to William Hague on how the Conservative and Lib Dem coalition would be handling the ongoing difficulties.

The letter said: “The public deserves better than a Government turning inwards and fighting with each other instead of fighting for British jobs, British investment and British growth.

“This spectacle of an out-of-touch and divided government is undermining the influence Britain has at the European negotiating table which is bad news for millions of British people who desperately want to see a proper plan for growth and jobs.”

(DW)