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Merkel warns not to expect big change at October 23 EU summit

Oct 14, 2011, 13:20 GMT

Karlsruhe, Germany - German Chancellor Angela Merkel warned Friday there would be no dramatic course-changing decisions at an October 23 EU summit on the eurozone crisis.

'There isn't some clap of thunder and then it's all right,' she said Friday in a speech to a trade union conference.

Her remarks appeared to contrast with her joint statement this month with French President Nicolas Sarkozy that a package solution to the crisis was on the way and would be made public by the end of the month.

She told members of the IG Metall labour group near the southern city of Karlsruhe that every step would have to be weighed carefully and only undertaken if it yielded more benefits than disadvantages.

Merkel attributed the debt crisis in a band of eurozone nations to too much borrowing and a lack of economic competitiveness, both of which had built up over decades, she said, adding that the solutions could not be found overnight.

The chancellor called for EU leaders to discuss at subsequent summits how they will deal with big banks. She said the option of letting a bank fail had to be available without the whole financial system being endangered and the taxpayer footing the bill.

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