European leaders will this week seek to revamp their debt crisis-fighting strategy and snap a deadlock that is spooking investors and prompting warnings of contagion from the International Monetary Fund.

With European Central Bank President Jean-Claude Trichet reiterating opposition to any Greek debt restructuring, government chiefs convene July 21 in Brussels to discuss “the financial stability of the euro area as a whole and the future financing of the Greek program,” European Union President Herman van Rompuy said in a July 15 statement. Among topics for the talks is a potential overhaul of the 440-billion euro ($618 billion) rescue fund to enable Greece to better pay its bills.

The second summit in a month follows an intensification of the debt crisis that thrust Italy to the attention of investors and pushed bond yields to euro-area records across Europe's most debt-laden nations. Delay in finding a solution combined with discord among policy makers on whether bondholders should share the burden if Greece defaults has unnerved financial markets.