France Sarkozy To Meet Germany's Merkel Ahead Of EU Summit

BRUSSELS (Dow Jones)--The leaders of the euro zone's two leading members will meet Thursday ahead of a summit of heads of government from the European Union, an EU diplomat told Dow Jones Newswires

The summit will be dominated by talks on how to help Greece avoid a default on its debts without encouraging irresponsible borrowing by other governments.

German Chancellor Angela Merkel backs a plan under which Greece would receive loans from the International Monetary Fund and individual euro zone governments.

But French President Nicolas Sarkozy has in the past opposed the involvement of the IMF in bailing out a euro zone member. His main ally in that view is European Central bank President Jean-Claude Trichet.

However, a growing number of EU members have said they support the involvement of the IMF. The meeting between Merkel and Sarkozy may therefore be key to whether the summit decides on a way of providing financial help to Greece, should it be needed.

Merkel left a meeting of the European People's Party early to hold bilateral talks from 1400 GMT