Germany’s Merkel damps expectations of euro zone Greek deal

German Chancellor Angela Merkel doused expectations of any comprehensive solution to Greece's debt crisis at an emergency euro zone summit on Thursday. "Further steps will be necessary and not just one spectacular event which solves everything," Merkel told a joint news conference today with visiting Russian President Dmitry Medvedev.

The widespread longing for a single, final solution to make the Greek crisis disappear once and for all was unrealistic, she said, as officials wrestled with complex options for involving private bondholders in a second financial rescue for the debt-stricken euro zone state.

The euro eased against the dollar after the German leader said too high demands had been placed on Thursday's talks, which was only part of an incremental series of steps to address Greece's debt and competitiveness problems.

The European currency area is facing the biggest crisis of its 12-year existence, with contagion threatening major economies such as Italy and Spain after three small members – Greece, Ireland and Portugal – needed bailouts.