Europe needs durable, credible plan: Swan October 27, 2011 - 1:09PM
AAP
Federal Treasurer Wayne Swan says European leaders need a durable and credible plan to overcome the current sovereign debt problems.
Mr Swan said the time to act was now.
"It's critical that we see a comprehensive plan announced by European leaders as soon as possible," he told reporters in Canberra on Thursday. Advertisement: Story continues below
"It needs to be a durable and credible plan and it needs to be for the long term."
The world had paid a very high price for Europe's failure to act over the past 18 months, Mr Swan said.
The government fears that a recession in Europe could spread to the rest of the global economy.
European leaders have been remain locked in talks in Brussels trying to put together a package to resolve its sovereign debt crisis.
Diplomatic sources have said the leaders are planning to boost the eurozone's bailout fund to one trillion euros ($A1.34 trillion) from 440 billion euros.
As Mr Swan spoke there were unconfirmed reports EU leaders had reached a deal with banks to take losses of 50 per cent of their Greek bonds.
If true, this would be a key move toward solving the eurozone's debt crisis
