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EU Hunts for Debt-Cut Tools in Overhaul to Tame Spreading Crisis

European finance chiefs hunted for ways to cut Greece’s debt burden, floating ideas from bond buybacks to a temporary default in an overhaul of a strategy that has failed to contain the debt panic.

As a surge in bond yields in Italy and Spain brought the crisis closer to the heart of the euro area, Europe dusted off previously discarded plans under the glare of markets that have lost confidence in governments’ ability to still the turmoil.