European officials are considering steps previously rejected byGermany, including the use of precautionary credit lines, toprevent the spread of the region's debt crisis, a person close tothe talks said.

Other options up for discussion at tomorrow's Brussels summitinclude enabling the main 440 billion euro ($626 billion) rescuefund to lend to recapitalize banks, said the person, who declinedto be named because negotiations are in progress. Nothing will bedecided until leaders convene.

Together with a second Greek aid package, the goal is to proveto markets that Europe has the will and the tools to prevent the21-month sovereign debt crisis from engulfing Spain and Italy. Theeuro today rose against the dollar for a second day and Spanish andItalian bonds also gained as investors signaled optimism thatpolicy makers are moving toward a deal.

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