BRUSSELS, May 29 (Reuters) – Two weeks ago, Herman Van
Rompuy and Jose Manuel Barroso, the European Union’s top two
officials, met for lunch in Van Rompuy’s offices to discuss the
deteriorating situation in Greece. Their immediate concern was
an uncompromising letter.

On May 10, Alexis Tsipras, the 37-year-old leader of
Greece’s far-left SYRIZA coalition, had written to them to say
that the 130-billion-euro bailout agreed between Greece and the
EU/IMF was illegitimate and could not be honoured.

BRUSSELS (Reuters) – European Union leaders, advised by senior officials to prepare contingency plans in case Greece decides to quit the single currency, urged the country to stay the course on austerity and complete the reforms demanded under its bailout program.

After nearly six hours of talks held during an informal dinner, leaders said they were committed to Greece remaining in the euro zone, but it had to stick to its side of the bargain too, a commitment that will mean a heavy cost for Greeks.

BRUSSELS (Reuters) – European Union leaders discussed broad measures to stem the fallout from a winding up or restructuring of bad banks on Wednesday, EU officials said, with the European Central Bank pressing for the bloc to stand behind its struggling lenders.

At the heart of the discussion are proposals from the European Commission for a legal framework to wind up or reorganize insolvent banks so as to avoid a repeat of the multi-trillion-euro taxpayer bailouts during the financial crisis.

BRUSSELS, May 23 (Reuters) – European leaders will try to
breathe life into their stricken economies at a summit over
dinner on Wednesday, but disagreement over the issue of mutual
euro-zone bonds and whether they can alleviate two years of debt
turmoil will dominate the gathering.

For the first time in more than two years of debt-crisis
meetings, the leaders of France and Germany have not held their
own mini-summit beforehand to agree positions, marking a
significant shift in the traditional Franco-German axis.

BRUSSELS, May 23 (Reuters) – European leaders will explore
ways of breathing life into their stricken economies at a summit
on Wednesday, but the issue of euro-zone bonds and whether they
can help alleviate two years of debt turmoil will dominate the
meeting.

Prime Minister Mariano Rajoy of Spain, where the economy and
banking system are at the frontline of the crisis, will meet
newly elected French President Francois Hollande in Paris ahead
of the evening summit to discuss policy positions – a marked
shift away from the traditional Franco-German axis.

BRUSSELS, May 21 (Reuters) – France’s Francois Hollande will
push a proposal for mutualising European debt at an informal
summit of EU leaders in Brussels this week, increasing pressure
on German Chancellor Angela Merkel to drop her opposition to the
idea.

Senior EU and U.S. officials said the new French president
raised the idea of bonds jointly underwritten by all euro zone
member states during G8 talks at the weekend and would again
raise it when EU leaders meet in Brussels on May 23.

BRUSSELS, May 21 (Reuters) – French President Francois
Hollande and like-minded euro zone leaders are expected to
promote the idea of mutualised European debt at an informal
summit in Brussels this week, increasing pressure on German
Chancellor Angela Merkel to drop her opposition to the proposal.

Senior EU and U.S. officials said Hollande raised the topic
of euro area bonds – bonds jointly underwritten by all euro zone
member states – during G8 talks at the weekend and would again
push it when EU leaders meet in Brussels on May 23.

BRUSSELS, May 14 (Reuters) – A year ago, it was nearly
impossible to get a diplomat in Brussels to talk about the
possibility of Greece leaving the euro zone. Now, it’s the
opening to most conversations.

But while it may have become commonplace to discuss a Greek
exit (or Grexit as many economists call it), the practicalities
and implications of it are far more complicated and daunting
than many outside observers acknowledge.

BRUSSELS/ATHENS, May 11 (Reuters) – Spain and France came
under intense pressure from the European Commission on Friday to
deepen their deficit cuts as anxiety mounted over Greece’s
ability to stay in the euro zone.

Last ditch efforts to form a Greek government after last
Sunday’s inclusive election ran into trouble and ratings agency
Fitch said a Greek exit would damage all 17 euro zone countries
and prompt it to review their credit ratings.

BRUSSELS/ATHENS, May 11 (Reuters) – Spain and France came
under intense pressure from the European Commission on Friday to
take bolder steps to cut their budget deficits as Greece’s
political impasse deepened, highlighting the range of problems
facing the troubled euro zone.

Presenting its twice-yearly economic forecasts, the European
Commission said Spain would run a deficit of 6.4 percent of
economic output this year and 6.3 percent next year, with both
targets substantially above levels already agreed with the EU.