Trillion Euro Boost Agreed for Bailouts as Eurozone Recession Is Forecast

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Chancellor Angela Merkel yesterday revealed details of the rescue package to be agreed by European Union leaders on Wednesday, including plans to slash Greece's debt by up to 60 per cent and steps to boost the single currency bailout fund by 1 trillion (871m).

The German leader released details of the package to party leaders after her ruling conservative party announced that, in an extraordinary move, parliament would be called to approve the new measures because of concern about runaway EU funding among ordinary voters.

Volker Kauder, the parliamentary leader of Ms Merkel's Christian Democratic Party (CDU), said the question of additional "leverage" for bailout …