Germany and France row ahead of EU summit

The battle lines between France and Germany were last night threatening to scupper an outline for fiscal, banking, and political union in return for joint responsibility for debt that is aimed at restoring some market confidence in the eurozone.

EU leaders have succeeded in lowering expectations ahead of today’s summit, which was being touted by some as the most important of the current crisis.

Spain and Italy are leading the demand for some immediate action to reduce the pressure on their economies, which are both having to pay unsustainable rates for borrowing. Their message is that the crisis is continuing despite austerity and they need real help to stop the contagion.