Euro summit: Leaders locked in talks on debt crisis
After a first round of talks, the leaders said broad agreement had been reached on recapitalising banks exposed to countries that might default, BBC News reports.
But other elements of a full package are still being debated.
There are fears the Greek debt crisis could spread to Italy and Spain. German Chancellor Angela Merkel said there remained "many problems to settle".
As she arrived in Brussels on Wednesday, she said: "The world is watching Germany and Europe. They are looking to see if we are ready and able to assume our responsibilities during Europe's worst crisis since the end of World War II."
But according to draft summit conclusions there are still plenty of details to pin down, the BBC's Chris Morris in Brussels reports.
Higher standards
The summit has been discussing a number of proposals reportedly agreed on by EU officials at the weekend, including:
- European banks must raise 106bn euros (£92bn; $147bn) in new capital to shield them against possible losses to indebted countries
- The European Financial Stability Facility (EFSF) - the single currency's 440bn-euro bailout fund - is to be given more firepower, although it is not clear how this will be achieved
- Lenders to Greece will be asked to agree to much deeper losses than the 21% write-off currently on the table.
BBC economics correspondent Andrew Walker says tackling the weakness of banks is the area where most progress has been made.
Details also at http://www.bbc.co.uk/news/world-europe-15449149