France wants solution for Greece, Spain by October

(BRUSSELS) - France wants the European Union to find a solution for debt-hit Greece and Spain at next month's EU summit, French Finance Minister Pierre Moscovici said in Brussels Thursday.

"In the short term, we must address the issues on the table," he said after a working visit there.

French President Francois Hollande wanted to find a "strong and structural solution", he added.

"Ideally, we should be capable to do that in the next European Council."

EU leaders are scheduled to gather at EU headquarters in Brussels on October 18-19, when bailouts for Greece and Spain are expected to dominate the discussion.

"There is no time to lose," said Moscovici, indicating the plight of the two countries. "Uncertainty is the main enemy of growth."

Greece has been pleading for more time to carry out 11.6 billion euros ($14.4 billion) in spending cuts required in exchange for rescue loans.

Whether it gets that extra time will depend on the findings of the so-called "troika" of international creditors -- the European Union, the International Monetary Fund and the European Central Bank.

They are about to visit Greece to check on its progress in making the cuts required in return for the bail-out and are expected to report back towards the end of the month or early in October.

Spain, the fourth-largest economy in the euro zone, is currently with a financial crisis that led to a 100-billion-euro ($126-billion) eurozone rescue for banks.

But on Thursday, Spanish Prime Minister Mariano Rajoy insisted he had not asked European authorities for a sovereign bailout.

"When I have news, I will let you know," he told reporters in Madrid after meeting German Chancellor Angela Merkel.

European Central Bank chief Mario Draghi on Thursday announced a plan for a massive sovereign bond buy up, overcoming German opposition to unleash a so-called "big bazooka" against Europe's debt crisis.

His plan is designed to bring down the soaring borrowing costs that crisis-wracked countries such as Greece and Spain say prevent them from getting back on their feet.

Stock markets across Europe jumped and Spanish and Italian borrowing costs tumbled on the news of his plan.

Moscovici welcomed the ECB initiative, arguing that saving the euro was part of the bank's mission, he said.

"I welcome the vision developed by Mr Draghi," he continued, adding that now it was up to the member states to support that vision.