Policymakers to resume debt crisis talks

European officials will push on today with a long-term plan to tackle the region’s debt crisis, as banking and government negotiators zero in on a deal that will lighten Greece’s debt burden.

EU finance ministers will meet in Brussels to discuss new budget rules, a financial firewall to protect indebted states, and a Greek debt swap, with EU leaders racing to cobble together a firm rescue response in the coming weeks. Meanwhile, cash-strapped Greece and private bondholders said they had made progress in talks over the weekend in Athens.

As investors ignored this month’s euro area downgrades by Standard & Poor’s and sent the single currency to its first gain in seven weeks, leaders including German Chancellor Angela Merkel are set on exploiting the moment to lock in a final response to the crisis.