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Two EU summits to take place

Berlin and Paris disagree over whether the ECB should financially support the EU's new bailout fund
Berlin and Paris disagree over whether the ECB should financially support the EU's new bailout fund

European leaders will discuss in depth a global solution to the euro zone crisis at a summit but no decisions will be adopted before a second meeting to be held by Wednesday at the latest, France and Germany said in a joint statement.

The communiqué, issued after French President Nicolas Sarkozy and German Chancellor Angela Merkel spoke by telephone said that France and Germany wanted negotiations to start immediately with the private sector for an agreement on the sustainability of Greece's debt.

The summit is expected to take place in Brussels next Wednesday.

Sunday's planned summit of eurozone leaders will go ahead but will be "interrupted" to allow the Bundestag and other parliaments to approve preliminary decisions taken that day.

The Taoiseach Enda Kenny has said that the priority of two summits of eurozone leaders to be held on Sunday and next Wednesday will be to get a conclusive set of decisions that will deal with the crisis facing the Euro.

He said that the thinking behind the second summit was that political decisions taken by heads of government could be endorsed by national parliaments on Monday and Tuesday before being ratified when the eurozone leaders meet again on Wednesday.

Mr Kenny said this was "probably better" than a single summit meeting on Sunday, although he said he would much prefer if the crisis could be resolved "finally and conclusively" by agreement on Sunday.

Enda Kenny has said that the crisis needed to be dealt with decisively and with certainty in order to restore much needed confidence.

Mr Kenny acknowledged that there were differences "in some cases, wide differences" between eurozone governments on proposed solutions to the crisis, but he hoped that an agreement could be reached.

Differences remain between Paris and Berlin over how best to expand the EU's existing bailout fund and the EFSF.

The measures are to prevent contagion spreading from the Greek debt crisis to bigger economies like Italy and Spain.

It emerged yesterday that a significant roadblock stands in the way of EU leaders finally resolving the eurozone debt crisis at a summit in Brussels on Sunday.

France wants to increase the firepower of the fund by involving the ECB, however Germany is opposed to the move, as is the union's central bank itself.

Mr Sarkozy travelled to Frankfurt yesterday where he held talks with Angela Merkel, other eurozone policy chiefs and the head of International Monetary Fund, Christine Lagarde.

The European Commission has said that the eurozone's credibility is on the line and it is going to insist that a comprehensive deal to the debt crisis is secured.

European Commission President José Manuel Barroso has insisted on decisive action from EU leaders at Sunday's summit on tackling the debt crisis.

Intense negotiations can be expected right-up to the summit on Sunday.