Eurozone leaders to meet

The leaders of Germany, France and Italy are meeting for debate on the European Central Bank’s role in the region’s debt crisis and on how to align eurozone economic policies.

It marks new Italian prime minister Mario Monti’s first meeting with German Chancellor Angela Merkel and French President Nicolas Sarkozy since he took charge last week, amid market panic about Italy’s huge debts.

The meeting in Strasbourg, France, comes amid signs that even Germany and France – the eurozone’s biggest economies, and key to bailouts of weaker countries – are also under strain.

Mr Sarkozy’s government is pushing for the ECB to play a more active role, something that Ms Merkel strongly opposes.

The meeting follows the unveiling of proposals for the 17 eurozone economies to borrow money collectively.

The European Commission yesterday announced a green paper on Stability Bonds or so-called 'eurobonds'.

Chancellor Merkel opposes the idea but a German bond auction yesterday, designed to raise €6bn, managed to generate just over €3.5bn.