There are fears over the ability of the Eurozone to handle the debt crisis after diplomats in Brussels failed to reach agreement on key areas.
The breakdown in talks came only hours before today’s summit aimed at stemming growing concern for the Eurozone as Italy moves towards financial disaster.
The Italian economy is feared to be so parlous that it would require the full amount remaining in the emergency bailout fund if Italy is to avoid disaster.
It is believed that Eurozone leaders are looking for a huge increase in the fund which has been depleted following two emergency packages to help Greece.
The fund has helped stave off a collapse in the Greek economy. However Greece is not expected to be able to keep up debt payments and many analysts expect the country to default soon.