EU wants control over budgets

A top EU official wants powers to force eurozone countries to change their national budgets as part of a grand vision to save the currency.

Other ideas in the plan, published by European Council president Herman Van Rompuy, include issuing medium-term debt backed by all countries and a banking union with a single authority that would insure banking deposits and have the power to recapitalise banks directly.

The document, to be debated at a summit of EU leaders on Thursday and Friday, was drawn up by Mr Van Rompuy, European Commission president Jose Manuel Barroso, eurogroup head Jean-Claude Juncker and European Central Bank president Mario Draghi.