HIGHLIGHTS-Comments from EU leaders' Friday talks

BRUSSELS, June 24 (Reuters) - European Union leaders met on Friday for the second day of their summit to discuss international issues, with concerns about Greece looming over their talks.

Following are highlights of comments after Friday's discussions.

GREEK PRIME MINISTER GEORGE PAPANDREOU

ON GREEK PARLIAMENT SUPPORT FOR FISCAL PLAN:

"We are doing everything we can to put our house in order. This is a vote of confidence from our fellow partners in the European Union. I believe that the sense of crisis and sense of national responsibility and European responsibility is the sense that will preside over the discussions and the final vote in the parliament."

"This maturity makes me trust the deputies' judgment in order for us to overcome this obstacle and continue with these really tough reforms which will be beneficial for the country."

"The creditors or European partners have been lending money to Greece and by lending money, the European partners want Greece to be better, because it is the European taxpayers who are giving their money to the Greek people."

ON IMF FUNDING:

"Yesterday's EU decision secures our country's funding and its financial needs for the coming years ... It's certainly a condition for funding from the IMF. Therefore, I am certain that we will get the IMF's green light on its financing."

ON EXITING THE EURO:

"There has been a long-standing debate (about Greece leaving the euro). But if you look closely at the arguments, you will find that the cons outweigh the pros."

ON TAX:

"The greatest injustice in our country, and it is indeed an injustice, is the tax system. Not the essence of it but...its implementation. It is not a new problem. It is a structural problem.

"We have called together all the opposition of the country to work together and to set up a fairer tax system, which will function. I think it is our patriotic duty to pay our share, and furthermore the wealthy have the obligation to pay more."

ON SIZE OF SECOND EU-IMF BAILOUT:

"It is a mammoth loan ... Our first loan was 110 billion euros. The second loan -- I can not give you the specific figure -- could be equivalent."

BRITISH PRIME MINISTER DAVID CAMERON

ON MIGRATION AND ASYLUM SEEKERS:

"I was worried before this European Council about potential proposals to suspend the Dublin arrangements that allow us to return asylum seekers to the country from which they have come."

"I'm glad to report that Britain and Germany together made sure that those proposals aren't even referred to in any way in the Council conclusions."

"I think that is important. We want controlled migration in Europe and we want controlled migration above all in Britain."

ON LIBYA:

"We must be patient and we must be persistent because I think that the time pressure is on Colonel (Muammar) Gaddafi and his regime, it is not on us.

"I believe we need to show real support for the Transitional National Council who I believe are demonstrating that they are not extremists, they are not Islamists, they are not tribal, they want a united Libya.

"The pressure on Gaddafi is growing. You now see a growing rebellion in the west of the country and the growing strength of the Transitional National Council."

ON CROATIA:

"We are getting very close to Croatian accession. I'm extremely enthusiastic about membership by Western Balkan nations of the European Union."

ON FINANCIAL SITUATION AND GREECE:

"All European countries need to use the time that we have to strengthen banks and bank balance sheets and make sure they are meeting all of the requirements so that they are strong and can withstand any problems and difficulties."

"Of course, banks right across Europe that have exposure to Greece... every bank needs to make absolutely clear what its exposure is."

LUXEMBOURG'S PRIME MINISTER AND EUROGROUP CHAIRMAN JEAN-CLAUDE JUNCKER

ON GREEK SITUATION:

"In Greece, the realisation must come in the long term that things have to work differently economically. One cannot accept that wages constantly increase while the economy moves downwards.

"One must keep a very close eye on the development of wages and the economy. But the Greeks have not yet got this into their heads. There must be a change of thinking in Greece."

ON VOLUNTARY PRIVATE SECTOR PARTICIPATION:

"There are ongoing talks between national governments ... and private investors."

EUROPEAN COUNCIL PRESIDENT HERMAN VAN ROMPUY

"I spoke to Mr (Lorenzo Bini) Smaghi this morning by phone and he did tell me personally that he would not see his mandate as a member of the board through to its end and the European Council obviously fully respects the independence of the central bank and of its members,

"It's up to Mr (Bini) Smaghi to decide what timetable he may have."

GERMAN CHANCELLOR ANGELA MERKEL

ON GREECE, PORTUGAL AND IRELAND:

"It's going to be a very difficult road for Greece. Look at the privatisation requirements that need a certain amount of time to be realised. The Greeks are very much aware of this."

"I was very much impressed by the presentations of the Portuguese and the Irish. They show great resolve, the two prime ministers, in pushing through the programmes that they have decided."

ON PRIVATE SECTOR INVOLVEMENT IN GREEK AID PACKAGE:

"I don't want to comment on the current state of these talks, I think it's most important for us to have these talks first and then report to you the results. What 'substantial' means in concrete terms will then be shown."

"I don't think it would be wise to give you any numbers. We don't have any hard numbers as of yet. We have to look at the Greek commitments, we have to look at the total sum and then we can talk about the total amount of private sector involvement."

ON REFORMS IN GREECE:

"I'm quite confident, I know that the Greek prime minister is using all the political clout he has as well as the whole of the government in order to achieve a majority in the parliament for this package."

"I made it very clear that for the acceptance and for the stability of Greece, it would be highly desirable for the opposition to vote for this package -- as was the case in Ireland as was the case in Portugal."

FRENCH PRESIDENT NICOLAS SARKOZY

ON PRIVATE SECTOR INVOLVEMENT IN VOLUNTARY PLAN TO RENEW EXPIRING GREEK BONDS:

"We had many meetings with the banks and the insurance companies. There is no difficulty."

Following are highlights of comments from earlier in the day, ahead of Friday's talks:

GERMAN CHANCELLOR ANGELA MERKEL

ON EURO ZONE:

"Yesterday evening we reached an important political agreement on the stabilisation of the euro. That was an important decision. We've said that we will do everything to stabilise the euro, that we encourage Portugal and Ireland once again to implement their programmes."

ON GREECE:

"We have agreed that there will be a new programme for Greece, on which the Greek parliament will have to vote next week."

ON CLOSER ECONOMIC COORDINATION:

"We've agreed to take a look once a year at where we are in terms of individual countries, also in terms of unemployment and competitiveness.

"I believe that we are drawing the right lessons from the crisis."

BRITISH PRIME MINISTER DAVID CAMERON

ON GREEK SUPPORT:

"Everyone wants to support the Greek government in the steps they are taking. In the case of Britain, I sought assurances that Britain wouldn't be pulled into a euro zone package for Greece and I have received those assurances."

(Reporting by Christopher Le Coq, Philip Blenkinsop, Robert-Jan Bartunek, Keith Weir, David Brunnstrom, Justyna Pawlak, John O'Donnell, Noah Barkin, Emmanuel Jarry and Julien Toyer)