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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