French, German Leaders Seeking Greek Debt Plan

Posted July 20th, 2011 at 10:10 am (UTC-5)
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The leaders of France and Germany are hoping to forge a plan to help keep the debt-ridden Greek government from defaulting on its loans.

French President Nicolas Sarkozy is traveling to Berlin Wednesday for a hastily arranged meeting with German Chancellor Angela Merkel, one day ahead of Thursday's emergency European summit in Brussels.

The agenda for the summit deals with the possibility of a second financial bailout for Greece, on top of the international assistance it received last year. On Tuesday, Mrs. Merkel said she did not expect the EU summit to produce a “spectacular” solution to Greece's financial problems. She says a process of steps will be needed to fix Greece's economy.

Both the European Commission and European Central Bank have warned that if Greece defaults on its original bailout package, the entire European economy could suffer severe consequences. Some have suggested that private investors could contribute part of the cost of a new bailout package.

Mrs. Merkel spoke Tuesday with U.S. President Barack Obama about the financial crisis. They agreed on the need to deal effectively with the Greek financial situation in order to allow the European and global economies to continue their recovery.