| 8°C Dublin

Merkel and Sarkozy meet ahead of EU crisis summit

German Chancellor Angela Merkel and French President Nicolas Sarkozy are meeting today in a bid to agree on part of plan to sort out Greece’s sovereign debt problems.

The talks between the two leaders of Europe’s biggest economies in Berlin come ahead of an EU summit tomorrow where eurozone leaders will discuss the fallout from Greece on the rest of the euro region which also threatens the common currency.

The International Monetary Fund (IMF) has already warned that failure to come to some agreement would be a disaster for the euro.

While Ms Merkel said earlier the summit would not be able to provide a quick-fix for the continent’s problems, Greek Prime Minister George Papandreou said the summit could be a “make-or-break moment” for the euro region.

A number of initiatives may come out of the summit including the imposition of levies on banks, longer time for the repayment of State debt and lower interest rates on bailout loans.

After a meeting earlier this week, Ms Merkel and Mr Sarkozy confirmed they had discussions along the lines of the “Vienna Initiative.”

Back in 2009, international lenders agreed to the "Vienna Initiative" to boost credit for countries in central and eastern Europe and the banks in turn agreed to rollover repayments.