European Union officials open a crucial summit in Brussels in an effort to rescue the euro zone from a deepening sovereign debt crisis.
The aim is to agree by Wednesday on reducing Greece's debt burden, strengthening European banks, and maximizing the firepower of a rescue fund to stop the contagion from engulfing bigger states.
German Chancellor Angela Merkel said that the current crisis is deep-rooted and a long-term answer to the problems has to be found
SOUNDBITE: German Chancellor Angela Merkel, saying (German):
"We are fighting things that originated in part decades ago. It is not about a crisis of our currency. On Wednesday, it won't be the last step that we will take. That's why, when we talk about the future, that we ... probably must strengthen our control mechanisms in the Eurogroup. That's why there will be many steps to be taken. In the current discussion, we must on Wednesday take certain steps that belong together and that are complementary. A bank recapitalisation on its own does not make any sense. We must also see at the same time that the problems of Greece are put on a realistic basis and resolved."
French President Nicolas Sarkozy focused on what EU members have already agreed to.
SOUNDBITE: French President Nicolas Sarkozy, saying (French):
"We have reminded all of our European partners of our attachment to the introduction of a tax on financial transactions. It is a commitment that we took together and we will stick to it. There is a proposal from the Commission and the whole financial sector must be regulated and called upon to assume its responsibilities as well."
A key point of contention in the meeting is the size of discount Greece's bondholders should be forced to accept on their investments, with some reports suggesting it could be between 40 and 60 percent.
This has caused tension between the French and German governments because many of France's leading banks hold large amounts of Greek debt.
Deborah Lutterbeck, Reuters
