EU leaders arrived in Brussels Thursday for a eurozone crisis summit, mired in divisions over treaty changes proposed by Germany and France. Meanwhile, the ECB's president warned that there would be no big boost in rescue funding.
German Chancellor Angela Merkel said Thursday that EU leaders must restore "credibility" to the euro and that eurozone leaders meeting for a crisis summit in Brussels Friday should change the bloc's treaty to save the currency.
French president Nicolas Sarkozy warned Thursday that there would be "no second chance" if EU leaders meeting in Brussels Friday cannot reach a deal to save the euro. Paris and Berlin are looking to amend the bloc’s treaties to fix the currency.
The European Central Bank on Thursday cut its interest rate to 1% ahead of Friday's crucial eurozone summit in Brussels - the eighth crisis summit of the year - aimed at shoring up the common currency. (pictured: ECB president Mario Draghi)
The leaders of France and Germany are seeking to rally support for their plan to amend EU treaties ahead of the latest "make-or-break" summit on the eurozone debt crisis, which opens in Brussels later today.
French president Nicolas Sarkozy and German Chancellor Angela Merkel submitted a letter to the European council proposing a renewed contract between eurozone member states, the French presidency said on Wednesday.
Greece's coalition government overwhelmingly approved next year's austerity budget early Wednesday, increasing the scope of already tough spending cuts. The vote was marked by anti-austerity protests in the Greek capital.
European markets and the euro fell Tuesday following Standard & Poor's warning of an imminent eurozone downgrade. The ratings agency's statement effectively ended the rally in global equities that had taken place in recent days.
Rating agency Standard & Poor's reduced credit ratings on 15 big banks Tuesday as a result of new criteria that allow the agency to change ratings quickly when it sees new threats to bank funding or sees governments reluctant to bailout creditors.
Eurozone ministers agreed Tuesday to a plan to bolster the rescue fund and to create funds to attract foreign investors. Eurogroup chair Jean-Claude Juncker said the EU might have to seek loans from the IMF to increase the rescue fund.
