European leaders may consider giving the European Union more powers to rewrite the budgets of Eurozone countries, who breach the debt and deficit pact, at this week's summit, the Financial Times reported Monday.
The proposals are part of a wide-range of measures aimed at building a closer fiscal union, the report said citing the draft report to be presented at the summit. This will give Brussels more powers to "serve like a finance ministry of the 17 nations," the daily said.
On Monday, Moody's downgraded a number of Spanish banks despite the EU's consent to give a 100-billion euro bailout for the country's banking sector.
Markets were hit again on Monday after Cyprus became the fifth Eurozone economy to request for a bailout from its euro members.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.