24 Oct 2011

EU treaty change on cards to solve debt crisis

1:03 pm on 24 October 2011

Europe's leaders have agreed to change the European Union treaty if necessary to help resolve the eurozone's debt crisis and stop the region sinking into recession.

Emergency talks are being held in Brussels in an attempt to stabilise Europe's financial crisis.

EU President Herman Van Rompuy says members will explore the possibility of limited changes to the treaty, the BBC reports.

The leaders of Germany and France have held a joint news conference saying there has been progress on the three key elements of a package to deal with the crisis.

Banks will have to raise more capital to protect themselves from losses and German Chancellor Angela Merkel says they will have to try to do so privately.

However, she says they could resort to public funds if necessary.

French President Nicolas Sarkozy says there is moderately broad agreement on Greece, which has a serious government debt problem.

Another meeting of all the EU countries will be held on Wednesday.