Europe Chiefs Clash on Euro Bonds

EU summit bogs down; leaders urge Greece to honor its commitments.

European leaders clashed over joint debt sales as they called on Greece to stick with the budget cuts needed to stay in the euro and offered no immediate relief for recession-wracked Spain.

The 18th summit in more than two years of crisis fighting was marked by new French President Francois Hollande’s challenge to the German-dominated deficit-cutting orthodoxy that has failed to stabilize the euro area and led to speculation that Greece might be forced out.

German Difficulties

“These ideas of stricter banking supervision and resolution were only mentioned, we hadn’t a real discussion,” Van Rompuy said of the leaders’ debate.

Rajoy’s Plea

Rajoy pleaded with the central bank to restart a bond-purchase program that it mothballed in the face of German-led opposition. So far, the ECB has stockpiled 212 billion euros of government bonds to cap interest rates in hard-hit countries.

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