July 21, 2011 11:37 AM

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German Chancellor and French President Nicolas sort out disputes

German Chancellor Angela Merkel and French President Nicolas Sarkozy have sorted out their dispute over involving private creditors in a second financial rescue of debt-laden Greece. The move cleared the way for a deal at the emergency summit of euro zone leaders in Brussels today. The agreement between Merkel and Sarkozy was struck at a surprise meeting in Berlin on Wednesday night during discussions lasting more than six hours. Earlier, Chancellor Merkel pressed for involving private creditors to share the costs of the proposed bailout, while Sarkozy favoured voluntary involvement, fearing that French banks with huge exposure to Greece's debts will suffer heavy losses.The eurozone leaders have been under pressure in the past weeks to reach a speedy agreement on a second rescue package of about 120 billion euros to deal with the Greek crisis and safeguard the stability of their common currency.

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