German Chancellor, Angela Merkel
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Angela Merkel: 'Now or never' for addressing eurozone weakness

EU leaders are holding an emergency summit in Brussels aimed at tackling the eurozone debt crisis.

After a first round of talks, the leaders said a deal had been reached on recapitalising banks exposed to debt-ridden countries that might default.

Talks are continuing on a full package aimed at restoring market confidence.

There are fears the Greek debt crisis could spread to Italy and Spain. German Chancellor Angela Merkel said there remained "many problems to settle".

The BBC's Europe editor Gavin Hewitt reports from Brussels.

  • 26 Oct 2011
  • From the section Europe