German and French leaders discuss Greek split

The German and French leaders meet today amid a bitter dispute over a fresh round of financial help for Greece, with Chancellor Angela Merkel pushing for private creditors to share a big part of the burden.

French President Nicolas Sarkozy is in Berlin for talks today (Friday) in the hope of finding a compromise with Merkel. Sarkozy is insisting further disagreement could destabilise the euro and spark panic on financial markets.

The EU's top financial official, Olli Rehn, indicated on Thursday that Greece will likely get its next financial lifeline in July if Prime Minister George Papandreou's government can pass new budget cuts and privatizations before the end of the month.

Greece has been wracked by street protests and political turmoil over the issue.