European finance ministers will meet tommmorow in Luxembourg where talks will start at 6 p.m. and continue for another day as they seek to launch a second bailout for Greece which suffers to trim its huge budget defciit.

European officials are trying to find a way to encourage private sector investors to participate in buying Greek debt through providing them with extra yield.

Merkel said a Greek default would be beyond control and she expressed her worries of a contagion spread, where Moody's said it may lower Italy's credit rating due to its high sovereign debt.

Meanwhile, the Greek Prime Minister is facing a tough challenge as he has to win parliamentary confidence vote next week to pass the new austerity measures required to get the second international bailout.