Greece owes money to large European banks, such as Deutsche Bank. Greeks also owe money to the International Monetary Fund (IMF). The state owes the United Kingdom more than 14 billion pounds. The crisis in the nation poses a significant threat to the economic stability of the United Kingdom. The list of leaders at the debt summit included German Chancellor Angela Merkel. Although the atmosphere approaching the meeting was optimistic by all accounts, German Chancellor Angela Merkel had warned leaders to be cautious.

All the countries which are owed money by Greek citizens are not agreed on the path to take with respect to the debt owed by Greece. Up till recently, France was prepared to extend loans to the government for another 30 years. Germany has proposed that Grecians be given more time to repay. This would transfer existing debt into new bonds.

The situation with the Greek debt is very sensitive. If this nation defaults on its loans, other countries, such as Ireland and Portugal, might follow them and default as well. All these countries are struggling with sizeable debt. Having these countries default on their loans would impact the Euro significantly. The Euro might very well crumple under those conditions.

On its part, Greece has tried to implement tough austerity measures in the country. This move was met with widespread protests all across the nation. The austerity package introduced cuts in spending and raised taxes. 

The leaders are to discuss various measures which can help the country and prevent the situation from spreading to other countries which are having debt problems. Policymakers from several different countries in Europe discussed the possibility of offering a new loan package to Greece. Greeks have benefitted from an aid package before. An aid package totaling 110bn euro was given to Greece in May, 2010. A new loan package would help Greece meet its expenses. 

The leaders also discussed various ways in which private investors may offer assistance to the nation. The Eurozone leaders also discussed a new tax on banks at the meeting. The bank tax would be used as a means of getting private investors to contribute to the aid package. 

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The Euro Debt Crisis Explained