Greece's parents Angela Merkel and Nicolas Sarkozy held crisis talks again in Berlin amid warnings that a failure to break the debt crisis deadlock within 24 hours would send shockwaves around the global economy.

Late on Wednesday night it was announced that both parties were close to a deal to bail out Greece.

The German chancellor and the French president were barraged with pleas from political and financial leaders to reach an agreement – or risk the collapse of the single currency.

The leaders have been told that Thursday's crucial summit in Brussels (see interactive graphic above) was the "last chance saloon" for the euro project.

Mr Sarkozy decided to travel to Berlin after the pair repeatedly failed to agree on how to get private bondholders to share the costs of a new €115bn (Ł101bn) bail-out for Greece.

Jose Manuel Barroso, the president of the European Commission, said: "Nobody should be under any illusion: the situation is very serious. It requires a response. Otherwise the negative consequences will be felt in all the corners of Europe and beyond."