European stocks rose early on Monday, adding to last week's 8.5 percent jump, on growing hopes of a sweeping solution to the euro zone debt crisis as French President Nicolas Sarkozy and German Chancellor Angela Merkel meet ahead of a key summit.

Italy's move to unveil a fresh 30 billion euro package of austerity measures also eased tensions surrounding the country's finances and helped boost investor appetite for risky assets such as equities.

At 0803 GMT (8:03 a.m. British time), the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.7 percent at 991.90 points, a level not seen since late October.

But Kepler Capital Markets trader Patrice Perois said the market looked ripe for a pull-back after its best weekly gain in three years.

There are still significant differences between Sarkozy and Merkel, so we're in for a volatile week, and the risk is that any kind of disappointment could trigger a pull-back, he said.

(Reporting by Blaise Robinson)