Euro nations may be coming closer towards a resolution of the sovereign debt crisis as more specific solutions may be reached after another EU summit on Wednesday.

EU leaders are on the verge of achieving two major advances. One is concurring to bank recapitalization. The other is leveraging the bailout fund to thwart bond market contamination.

Differences between Germany and France regarding the methods in enhancing the extent of the European Financial Stability Facility (EFSF) have apparently been ironed out although the final figures have not been decided.

The second summit, which will take place after four days, will be limited to the 17 nations using the Euro currency and it is likely to happen that these countries will endorse projections made by finance ministers that banks will require recapitalization in the amount of €108 billion ($A146.13 billion), according to the Business Spectator.

The European community may benefit from the decision of France to given way amid the strong resistance of Germany to the French government's preference of acquiring funds from the European Central Bank (ECB) in solving the crisis.

Euro zone countries can instead rely on up-and-coming economies such as Brazil and China for assistance in strengthening its unhealthy bond market, according to a Reuter's report.

The whole world is keenly awaiting the result of the twin summits as the apprehensions about another recession has not dissipated.

Meanwhile, the Italian government has been urged by its neighbours to formulate a more credible program that could implement "structural reforms to increase its growth capability.

A Reuter's release said that Italian Prime Minister Silvio Berlusconi has convened his cabinet to come up with measures in bringing back market confidence.

German Chancellor Angela Merkel mentioned the need for Italy to make a sacrifice by "reducing its enormous debt, which is estimated at of €1.9 trillion, in a credible way."

Likewise, Greek Prime Minister George Papandreou has implored for a workable cancellation of his country's debt, as Europe and the IMF struggled with negotiations on a so-called 'haircut' of at least 50 per cent.