Tsipras Pledges to Boost Efforts for Deal Before Greek Deadline

Greek Talks Yield Optimism, but No Deal on Debt

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German Chancellor Angela Merkel met with Greek and French leaders as her government considers throwing a lifeline to Greece, as both sides firm up their negotiating positions for a deal to unlock aid.

With Greece’s banking system on the brink and Prime Minister Alexis Tsipras running out of time, Merkel’s government may be prepared to endorse a rescue payment in return for just one reform from the creditors’ list of demands as a start, two people familiar with Germany’s position said. Merkel, Tsipras and French President Francois Hollande held two hours of talks ending early Thursday.