German Chancellor Angela Merkel and French President NicolasSarkozy will outline a joint position to solve Greece's debt crisiswhen they arrive in Brussels for a summit convened to stamp outcontagion in European bond markets.

The pact was agreed on after a seven-hour meeting in Merkel'sChancellery in Berlin that ended after midnight, according to astatement distributed to reporters. Merkel and Sarkozy “listened”to the views of European Central Bank President Jean-ClaudeTrichet, who was also present, though the statement didn't say ifthey settled differences on whether Greece should be allowed todefault.

European Union officials will follow a two-pronged approachtoday, focusing on the need to agree on a second bailout for Greeceand measures that stop the debt crisis engulfing Italy and Spain.Greek options include funding a rescue using a bank tax, allowinginvestors to roll over Greek debt, cutting the interest rates onoutstanding bailout loans and managing a bond default.

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