( CNN ) -- European leaders are meeting to attempt to resolve the debt crisis in Greece and prevent it infecting other countries -- an outcome that could potentially tear apart the 17-member eurozone and lead to another global economic slump . So what can they hope to achieve , what 's behind the crisis and how serious is it ? Who is meeting and why ? Eurozone leaders are gathering in Brussels , including French President Nicolas Sarkozy and German Chancellor Angela Merkel . They are meeting to discuss ways to bring Greece 's spiraling debt problem under control , chiefly through a multi-billion dollar bailout package . They are also addressing concerns that Greece 's woes could infect other eurozone countries . Why is Greece in trouble ? Years of unrestrained spending , cheap lending and a failure to implement financial reforms left Greece badly exposed when the global economic downturn struck . This revealed partly-fiddled statistics that showed debt levels and deficits exceeded eurozone limits . As the dust settled , it emerged that Greece is teetering on the brink of default as it faces debts of about $ 500 billion . It has become reliant on international funds to make repayments . How bad is it ? Bad enough to warrant an initial $ 145 billion bail out last year . Now , with the crisis showing no sign of abating , another multi-billion dollar bail out is in on the table . The initial package assumed Greece would eventually be able to borrow again from the open market , but high lending rates mean this has been impossible and a second rescue is needed . This , however , will only be forthcoming if European leaders can agree on terms . Why is the rest of Europe worried ? Greece 's woes reflect badly on the credibility of the euro . A default from Greece is also bound to rekindle fears of possible defaults by other bailed-out euro nations , like Portugal and Ireland , and re-ignite the debate on whether the eurozone can survive . See a map of Europe 's debt levels . This could knock the whole bloc into the red , affecting the global economy . And if European countries continue to resort to rescue packages involving bodies such as the International Monetary Fund , this would further damage the euro 's reputation and could lead to a substantial fall against other key currencies , especially the U.S. dollar . Why is the second bailout package a problem ? The eurozone 's leading economy Germany has been at loggerheads with the rest of Europe over how Greece should repay its spiraling debt . Germany has been pushing for a `` soft restructuring '' of Greece 's loans -- a move that would make private investors share the burden -- but the European Central Bank has warned any compulsory restructuring could lead to a broader crisis . Talks between finance ministers have until now failed to reach consensus , resulting in the latest summit between eurozone leaders . Can a deal be reached ? Early indications are favorable . Sarkozy and Merkel -- arguably the two most influential participants -- have reportedly thrashed out a possible solution ahead of the summit . Details are n't clear but the Financial Times says they have already run the plan past European Union President Herman van Rompuy and Jean-Claude Trichet , the president of the European Central Bank . That said , many European leaders involved in the talks will be wary of agreeing to anything that commits them to using public cash to fund the bailouts . Some are also likely to argue that any deal reached now can only be palliative , failing to stop the crisis spreading at a later date . What are the likely solutions ? There are several possibilities . The most basic fix would see a reduction in interest payments made by Greece on earlier rescue loans and a fresh bailout of about $ 150 billion to plug impending holes in the Greek economy . Another option is a rollover of debt -- which would buy time , but not solve the problem . There is also talk of a controversial $ 42 billion tax on banks . This would raise bailout money without putting a strain on the public purse , but would involve a major legal shake up across the eurozone . Also up for discussion is a $ 628 billion expansion of eurozone crisis funds to deal with further problems . What if no deal is reached ? The doomday scenario sees a dramatic slide in confidence as investors retreat from European financial markets . This pushes up the cost of borrowing across the region , triggering new fears about the threat of debt crises in Spain and Italy . This begins to drag on countries with debt exposure to Spain and Italy . Eventually , the whole eurozone could be pushed the brink , generating financial shockwaves across the world that will herald a new global economic slump . What is Greece doing to help itself ? To be fair , Greece is n't standing idly by . It has already imposed hugely unpopular austerity measures against an explosive backdrop of public discontent . It is also taking drastic steps to ease its debt burden by selling off numerous assets . It is looking at an extensive privatization program that could see it unload prized assets including stakes in banks , railways , utility firms , ports and the postal service . There is also a plan to offload Hellenikon , Athens ' former international airport . Other measures include floating Olympic and tourism property assets on the stock exchange and issuing gaming licenses . The target is to raise about $ 71 billion by 2015 .
European leaders are meeting in Brussels to try to solve Greece 's economic crisis . The Greek government is asking for a bailout of up to 240 billion euros ( $ 270 million ), but the EU has said it will only provide about 50 percent of that amount and give another 25 % Any deal will have to address threat of Europe-wide contagion leading to global financial slump .