German Chancellor Angela Merkel said the European Union summit on Oct. 23 will not be “the end point” of the debt crisis that requires more than “a magic wand” to solve.
“It won’t be the final point where we regain the confidence of others, but it will be a stepping stone, a marker on the road,” Merkel said in a speech in Frankfurt today.
Merkel and other euro-area leaders assembled in Frankfurt seeking to narrow divisions four days before a summit that she said has “very important matters” on the agenda. Hurdles to leveraging the 440 billion-euro ($607 billion) bailout fund and opposition from banks to forced recapitalization and deeper writedowns on Greek debt are slowing the search for solutions.
“All of the sins of omission and commission of the past cannot be undone by waving a magic wand,” Merkel said at the event honoring European Central Bank President Jean-Claude Trichet. “We have to pursue our economic activities sustainably. This is going to be a long and arduous road.”
She renewed her previous defense of the euro, saying the 17-nation currency is “inextricably linked with the European project as a whole,” has proved stable and will not be allowed to fail.