EU Summit Looms on Debt Deadlock

As crisis intensifies, leaders debate role of bondholders in Greek bailout.

European leaders will this week seek to revamp their debt crisis-fighting strategy and snap a deadlock that is spooking investors and prompting warnings of contagion from the International Monetary Fund.

With European Central Bank President Jean-Claude Trichet reiterating opposition to any Greek debt restructuring, government chiefs convene July 21 in Brussels to discuss “the financial stability of the euro area as a whole and the future financing of the Greek program,” European Union President Herman van Rompuy said in a July 15 statement. Among topics for the talks is a potential overhaul of the 440-billion euro ($618 billion) rescue fund to enable Greece to better pay its bills.

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