HIGHLIGHTS-European Union finance ministers, officials

BRUSSELS Nov 8 (Reuters) - European Union finance ministers and officials met in Brussels on Tuesday to discuss efforts to recapitalise European banks and proposals for a financial transaction tax.

Following are highlights of comments after the meeting:

POLISH FINANCE MINISTER JACEK ROSTOWSKI

ASKED ABOUT DEEPER EURO-ZONE INTEGRATION POSSIBLY LEADING TO A TWO-TIER EU:

"We welcome any additional actions that will ensure that this deeper, better integration will not translate into opening a gap between the 17 (euro zone) and 10 (non-euro zone) member states."

"In order to prevent that gap being widened by the deeper integration in the euro zone, the remaining 10 member states must be free to hold discussions about those issues that are of interest to them and that are the repercussions that they have to bear, the repercussions of the decisions taken in the euro zone."

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN

ON ITALIAN BOND SPREADS:

"Certainly we are concerned about the situation and we following the situation very closely."

ON SITUATION IN ITALY:

"The situation in Italy as you know, as well as I do, is in a certain movement. I don't predict what will be the outcome of the movement, but the essential thing is that the economic and financial situation of Italy is very worrying and we want to help Italy through our rigorous surveillance and therefore we are sending our mission to Rome... to start work tomorrow.

"Whether it is one week or more, let's not rush ahead of events. Let's wait to see how events unfold. But from our side, the sooner the better because time is of the essence and Italy is facing very significant market pressures for the moment. And therefore we want to help Italy reform the country in partnership with the Italian people and the whole Italian society."

ON MISSION TO ROME:

"It's mission is essentially related to preparing of such kind of fiscal measures and structural reforms that are necessary in order to meet the European commitments and in order to ensure fiscal prudence and economic stability.

"And therefore it is in any case both necessary and certainly useful groundwork for the future assistance in Italy by what ever government present or future government once this work is done."

"Whether it is one week or more, let's not rush ahead of events, let's wait how things unfold. But from our side the sooner the better because time is of the essence and Italy is facing significant market pressures for the moment, and therefore we want to help Italy reform the country in partnership with the Italian people and the whole Italian society."

ON SITUATION IN GREECE:

"Now this confidence needs to be mended. It was very clear yesterday in the Eurogroup that the finance ministers of the euro area expect that there is not only a written commitment, a written confirmation of the commitment of a broad-based government of national unity, but also that the prior actions that are required to be decided and undertaken are indeed done as a condition of disbursing the sixth tranche in time and launching the negotiations of the second programme, including also private sector involvement."

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

ON SITUATION IN ITALY:

"The problem in Italy is not primarily the real data, the debt is high, the deficit is not -- economic data are not that bad. The problem is a lack of trust from the financial markets and that of course is a realistic situation. And this trust has to be strengthened.

"And for that it's an important element that Italy didn't just announce measures but that it also asked for independent institutions -- the EU Commission and IMF -- monitors and publicly reports on how Italy implements its measures. That's a measure that builds trust."

ON FINANCIAL TRANSACTION TAX (FTT):

"Today in Ecofin we talked mainly about the FTT. We had a lively, intensive debate and we didn't agree on everything but we agreed that very soon we should lead a political discussion on details to determine at an early stage whether there's a chance to agree on such a tax in the EU.

"All agreed we needed a decision soon. All agreed we needed additional taxation of the financial sector.

"Most have understood that we need to come to conclusions more quickly.

"We resolved to determine soon in spring whether (the financial transaction tax) would stand a chance in the foreseeable future."

Following are highlights of comments before the meeting:

SWEDISH FINANCE MINISTER ANDERS BORG

ON BANK RECAPITALISATION:

"We should do what we have promised. EBA (European Banking Authority) has said we need a little bit more than 100 billion (euros) in recapitalization. We should stick to those numbers. They should not be watered down, we should not change the criteria and we should stick to the accounting rules set out by EBA.

"Which means we need around 100 billion euros in recapitalization. It should be strongly recognised that any watering down would be costly in terms of credibility. We should put that risk aside."

ON FINANCIAL TRANSACTION TAX:

"The solutions that are going to be discussed today, the financial transaction tax for example, is a non-starter. It is a very efficient way of reducing European growth and it will increase the borrowing costs for indebted countries.

"That is a very inefficient tool and we also believe that mutual bank lending guarantees cannot be accepted. It is extremely costly for taxpayers."

ON HIGH LEVELS OF DEBT:

"Europe is running dry on credibility and a solution to a high debt crisis must be lower debt. The responsibility for that falls with the country with high debt and that is obviously Greece and Italy.

BELGIAN FINANCE MINISTER DIDIER REYNDERS

ON FINANCIAL TRANSACTION TAX:

"We need this morning to make progress on the taxation of financial transactions."

"It was impossible to reach an agreement about that in the G20 but if it's possible in the European Union it will be a good evolution. If it's not we will maybe do the same in euro zone only."

"The Commission has proposed to put such a taxation into force in 2014. If it's not possible in 2014 in the European Union we need to do it at the same scale in the euro zone, so it must be possible."

BRITISH CHANCELLOR OF THE EXCHEQUER GEORGE OSBORNE

ON FIREWALL AGAINST CONTAGION:

"We need to focus on getting the firewall in place. It is all very well saying we've got the firewall but we need to convincingly show the world that the firewall exists and it has sufficient resources in it.

"That is what the discussion today will in part be about. The euro zone needs to show the world it can stand behind its currency, it cannot just wait on developments in Athens and in Rome.

"We must also make progress here in Brussels. If we don't that will continue to have very damaging effects on the entire European economy, including Britain."

SPANISH ECONOMY MINISTER ELENA SALGADO

ON SPANISH SITUATION:

"The feeling is unanimous right now that Spain is in a better situation. We need to keep working. The situation in debt markets is far from optimal. Our economy doesn't serve these differentials right now, so we need to keep working to regain confidence."

AUSTRIAN FINANCE MINISTER MARIA FEKTER

"Italy cannot hope for external help, because of its size." (Reporting by Annika Breidthardt, Christopher Le Coq, Robin Emmott, Robert-Jan Bartunek, Jan Strupczewski and Juliane von Reppert-Bismarck)