EU Talks on Banking Union to Expose Divisions

German Finance Minister Wolfgang Schaeuble, left, and French Finance Minister Pierre Moscovici talk during a media conference after a meeting of EU finance ministers at the EU Council building in Brussels on Tuesday, Nov. 13, 2012.

German Finance Minister Wolfgang Schaeuble, left, and French Finance Minister Pierre Moscovici talk during a media conference after a meeting of EU finance ministers Tuesday at the EU Council building in Brussels.

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German Finance Minister Wolfgang Schaeuble suggested Tuesday that the hole could be plugged by lowering the interest rates of the loans. Economists don't think that will be enough and have suggested eurozone countries should accept losses on their loans — something Schaeuble ruled out.

While it waits for its next batch of loans, Greece has had to raise money from financial markets to be able to repay €5 billion in bonds maturing Friday. It managed to get €4.06 billion from the sale of short-term bills on Tuesday. It will accept more bids until Thursday, by which time it expects to have gathered enough to afford Friday's bond repayment.

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