EU haggles over Greek rescue plan

European officials today tried to prevent the debt crisis from spilling over into bigger economies such as Italy and Spain, as disagreements delayed a second bailout for Greece.

Intense debate over how, and how much, banks and other private investors can contribute to a new rescue package for Greece has unsettled financial markets in the eurozone, most dramatically in Italy, as rating agencies warned that even a voluntary involvement will likely be seen as a partial default of Greece on its massive debts.