Eurozone Leaders Meet to Discuss Second Bailout for Greece

Posted July 21st, 2011 at 7:05 am (UTC-5)
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Eurozone leaders are meeting Thursday to discuss a second economic bailout for Greece.

Officials say the rescue plan could allow Greece to slip into a temporary debt default as part of a bond payback plan, but is unlikely to contain a bank tax levy.

The leaders of France and Germany, Europe’s two largest economies, reached an agreement on helping Greece hours before the emergency summit convened. Neither side gave any details on their agreement.

German Chancellor Angela Merkel has been saying that private investment is required if Greece is to get a second economic bailout. French President Nicolas Sarkozy has been insisting that private investment should be voluntary.

Last year’s $160 billion loan from the EU and International Monetary Fund failed to bring any major improvements to the debt-ridden Greek economy.

Ireland and Portugal have also gotten EU and IMF bailouts and investors fear the problems could spread to other shaky EU economies, including Italy and Spain.