Europe’s leaders intend to multiply their rescue fund fourfold to one trillion euros, according to reports emerging from the emergency euro zone summit in Brussels.
But the figure has not been confirmed and as the meeting headed into the early hours, details of the plan to end the debt crisis were still not fully formed.
Reports say leaders are pressing Greece’s creditors to accept losses of over 50 per cent on their bondholdings.
Analysts are already saying that as things stand, markets are likely to be disappointed that despite broad intentions, there still appears to be no detailed master plan to scale up the rescue fund, recapitalise banks and reduce Greek debt to a sustainable level.
The summit has been described as make or break. Leaders have been accused of doing too little, too late in response to a crisis that began in Greece and threatens the single currency and the European Union project.