Leaders prepare multi-trillion eurozone rescue plan

European officials are reportedly working on a grand plan to save the eurozone involving a major bank recapitalisation, giving the bailout fund several trillion euros of firepower, and a possible Greek default.

German and French authorities have begun work on a three-pronged strategy, the Sunday Telegraph reports. Their aim is to build a "firebreak" around Greece, Portugal and Ireland to prevent the crisis spreading to Italy and Spain, countries considered "too big to bail". According to sources, progress has been made at the G20 meeting in Washington where the world's leading economies have set themselves a six-week deadline to resolve the crisis. Sources said the plan would have to be released as a whole, as the elements would not work in isolation. First, Europe's banks would have t...