European leaders will this week seek to revamp their debtcrisis-fighting strategy and snap a deadlock that is spookinginvestors and prompting warnings of contagion from theInternational Monetary Fund.

With European Central Bank President Jean-Claude Trichetreiterating opposition to any Greek debt restructuring, governmentchiefs convene July 21 in Brussels to discuss “the financialstability of the euro area as a whole and the future financing ofthe Greek program,” European Union President Herman van Rompuy saidin a July 15 statement. Among topics for the talks is a potentialoverhaul of the 440-billion euro ($618 billion) rescue fund toenable Greece to better pay its bills.

The second summit in a month follows an intensification of thedebt crisis that thrust Italy to the attention of investors andpushed bond yields to euro-area records across Europe's mostdebt-laden nations. Delay in finding a solution combined withdiscord among policy makers on whether bondholders should share theburden if Greece defaults has unnerved financial markets.