EU votes to tighten up rules on state debts

EU finance ministers largely rejected German proposals on punishing errant eurozone countries by withdrawing voting rights because it would involve changing the treaties.

Instead they came out in favour of tightening the rules on government debts and deficits and including new parameters to judge their health such as labour costs, growth due to borrowing and competitiveness.

Finance Minister Brian Lenihan, who attended the first meeting of the taskforce charged with coming up with a new regime to protect the euro, said he would not rule out treaty change. But he agreed with French minister, Christine Lagarde, that what was needed was agreement on actions that could be implemented as fast as possible.