Merkel expects breakthrough on euro zone crisis Wednesday

Chancellor Angela Merkel

"We have to take far-reaching decisions. These have to be prepared properly, I believe that the finance ministers made progress, so that we can achieve our ambitious targets by Wednesday," Merkel told reporters.

Euro zone countries are working on a plan that involves leveraging the euro zone bailout fund, recapitalizing European banks and putting together a second financing package for Greece that entails deeper losses for private investors.

Euro zone leaders hope the measures will ease market anxiety over euro zone sovereign debt and put an end to the two-year-old crisis that now threatens the global economy.

Euro zone leaders meet on Sunday to discuss the package but real decisions will only come at the next summit on Wednesday.

"The breakthrough... will be on Wednesday," Merkel said.

(Reporting By Ilona Wisenbach, writing by Jan Strupczewski)