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Germany and France reach agreement on second Greek bailout

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by Kay Mitchell

Late night talks between German Chancellor Angela Merkel and French President Nicolas Sarkozy have led to a common position on a second bailout for Greece.

After seven hours of talks in Berlin, sources said both parties had also discussed their efforts to prevent the debt crisis spreading through the rest of Europe.

However, full details have yet to be published.

The announcement comes as euro zone leaders prepare for a summit today in Brussels, where the debt crisis will be top of the agenda.

The summit will discuss how to prevent the debt crisis from spreading to larger economies such as Italy and Spain, as well as the €110 billion fresh bailout for Greece.

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News posted: July 21, 2011

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