EU finance ministers yesterday struggled to reach a deal on forcing banks to set aside more capital to cushion future losses, with Spain saying the bloc had to dispel doubts about the strength of its lenders.

EU finance ministers were warned tonight to abandon “brutal austerity” as the answer to the sovereign debt crisis and instead give struggling countries a chance to restore collapsing economies.

Europe’s governments are under pressure today to back their words of support for Barack Obama with action to help the new US President close Guantanamo Bay.

European Union justice and interior ministers were today discussing a contentious plan on retaining data from telephone calls and e-mails as part of beefed-up measures to fight terrorism and organised crime.