Finland and the Netherlands, the eurozone's most hardline creditor states, cast the first doubts on Monday on a European summit deal designed to save Spain and Italy from being engulfed by the currency bloc's debt crisis.
Germany's parliament resoundingly approved the eurozone's permanent bailout scheme and new budget rules on Friday (29 June), but legal hurdles remain and Chancellor Angela Merkel's concessions to eurozone partners Italy and Spain may make those harder to overcome.
Increasing the eurozone rescue fund – and determining the extent to which Spain may need its help – will be under discussion today and tomorrow (30-31 March) as European finance ministers meet in Copenhagen.
Germany may not be ready to back an increase in Europe's bailout fund at a summit in Brussels this week, delaying efforts to meet international demands for Europe to strengthen its defences against the region's sovereign debt crisis.
A 50-strong group of German activists are trying to derail the creation of a European Stability Mechanism (ESM), an EU decision which would immortalise loans granted to troubled economies, like Ireland, Greece – and now possibly Portugal.
European parliamentarians have reacted angrily to Franco-German plans to abandon the so-called 'Community method' and reform economic governance of the euro zone on an intergovernmental basis. EURACTIV.fr reports.
As European Union leaders prepare to meet in Brussels this week to create a lasting lending facility for indebted countries, France and Germany have surprised observers by stating their openness to discussing whether countries that share the euro currency should harmonise fiscal policy.