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Eurozone crisis live: EU summit optimism tested by record unemployment Eurozone crisis live: EU summit optimism tested by record unemployment
(40 minutes later)
2.34pm: Wall Street has just opened, and with a mood of cautious optimism among investors today, the Dow Jones Industrial Average is up around 60 points in the first few minutes of trading.
As well as hopes that Greece's debt negotiations could - finally - be concluded, there are whispers in the market that China's latest manufacturing figures, as shown by the purchasing managers survey for January, could be better than expected. This is helping to support the mining sector, which of course is heavily dependent on Chinese demand for commodities.
2.10pm:European leaders promised a new growth strategy yesterday, but some analysts have warned that they are several years late.
This graph from our Datablog (click to see the full post), shows how eurozone growth compares to other major economies.
And with that, I'm handing over to my colleague Nick Fletcher. Cheers all.....
1.45pm: Time for a lunchtime (is) round-up.
• Unemployment in the eurozone has hit its highest level since the creation of the single currency. The eurozone jobless rate has risen to 10.4%, despite a fall in German unemployment (on a seasonally adjusted basis).
• Yesterday's EU summit has failed to impress City experts. Analysts warned that European leaders had again failed to make significant progress on the EU bailout fund. The crucial details are still unresolved, warned UBS.
• David Cameron has been criticised by his backbenchers for allowing the European Court of Justice to police the new fiscal pact. The PM will address parliament at 3.30pm, with one MP already demanding a referendum today.
• Greece's debt negotiations continued. Reports from Athens suggest a deal could come within days, perhaps with a coupon as low as 3% on the new Greek bonds that will be issued under the deal. Greece's economy continues to slide, though, with the latest retail sales showing a sharp fall.
• Nicolas Sarkozy's re-election changes worsened. Latest polling data shows he is lagging behind Francois Hollande, who would demand changes to the fiscal pact if he become France's next president.
1.24pm: Henry McDonald, our correspondent in Dublin, reports that Ireland's prime minister will recommend to the Cabinet in Dublin later today that the intergovernmental treaty hammered out in Brussels should be sent to the Irish Attorney General.1.24pm: Henry McDonald, our correspondent in Dublin, reports that Ireland's prime minister will recommend to the Cabinet in Dublin later today that the intergovernmental treaty hammered out in Brussels should be sent to the Irish Attorney General.
The Republic's chief law officer will decide if the latest EU treaty impacts on Ireland's sovreignty and if so, would require the Irish people to endorse the latest EU treaty in another referendum.The Republic's chief law officer will decide if the latest EU treaty impacts on Ireland's sovreignty and if so, would require the Irish people to endorse the latest EU treaty in another referendum.
Henry explains:Henry explains:

Enda Kenny stressed in Brussels last night that the country's Attorney General would be under no time pressure to reach a conclusion on the treaty's constitutionality. But opposition parties led by Sinn Fein have vowed to pressurize the Fine Gael/Labour government to put the new EU fiscal arrangements to the Irish people.
Enda Kenny stressed in Brussels last night that the country's Attorney General would be under no time pressure to reach a conclusion on the treaty's constitutionality. But opposition parties led by Sinn Fein have vowed to pressurize the Fine Gael/Labour government to put the new EU fiscal arrangements to the Irish people.
Sinn Fein's Padraigh Mac Lochlainn said: "For Ireland the intergovernmental treaty means a serious loss of sovereignty, a longer period of austerity and the continued bailing out of banks."Sinn Fein's Padraigh Mac Lochlainn said: "For Ireland the intergovernmental treaty means a serious loss of sovereignty, a longer period of austerity and the continued bailing out of banks."
In addition any Irish citizen has a constitutional right to challenge the validity of EU treaties and it is highly llikely that if the current government decides not to hold a plebescite an individual will take a case to the Republic's High Court on the issue.In addition any Irish citizen has a constitutional right to challenge the validity of EU treaties and it is highly llikely that if the current government decides not to hold a plebescite an individual will take a case to the Republic's High Court on the issue.
The prospect therefore looms of the Irish being in the uneasy position once again of holding the future of the EU in their hands.The prospect therefore looms of the Irish being in the uneasy position once again of holding the future of the EU in their hands.
12.56pm: Portuguese government debt has risen in value this morning, reversing days of steady falls.12.56pm: Portuguese government debt has risen in value this morning, reversing days of steady falls.
The change pushed down the yield on Portugal's 10-year debt in the secondary bond market, from 18.3% overnight to 16.5%.The change pushed down the yield on Portugal's 10-year debt in the secondary bond market, from 18.3% overnight to 16.5%.
There had been rumours that the European Central Bank had been buying up Portuguese debt this morning -- having weaned itself off its recent diet of Spanish and Italian bonds (it spent just €63m on eurozone bonds last week, down from €2.24bn in the previous seven days).There had been rumours that the European Central Bank had been buying up Portuguese debt this morning -- having weaned itself off its recent diet of Spanish and Italian bonds (it spent just €63m on eurozone bonds last week, down from €2.24bn in the previous seven days).
12.24pm: Nicolas Sarkozy continues to lag behind socialist rival Francois Hollande, despite his recent burst of activity.12.24pm: Nicolas Sarkozy continues to lag behind socialist rival Francois Hollande, despite his recent burst of activity.
Polling data released this morning (and conducted after a national TV address on Sunday night), found that Hollande would win 31% of votes in the first-round of April's presidential election. Sarkozy, who has not yet thrown his chapeau into the ring, attracts 24.5% of support.Polling data released this morning (and conducted after a national TV address on Sunday night), found that Hollande would win 31% of votes in the first-round of April's presidential election. Sarkozy, who has not yet thrown his chapeau into the ring, attracts 24.5% of support.
Hollande would then romp to victory a second round run-off by 58% to 42%.Hollande would then romp to victory a second round run-off by 58% to 42%.
This is crucially important for the eurozone, because Hollande has already said he would attempt to renegotiate the new euro-zone treaty.This is crucially important for the eurozone, because Hollande has already said he would attempt to renegotiate the new euro-zone treaty.
Hollande has also vowed to do battle against "the world of finance", promising new taxes on banks and the wealthy to fund higher state spending, tens of thousands more teachers, and a 150,000 subsidised positions for young people.Hollande has also vowed to do battle against "the world of finance", promising new taxes on banks and the wealthy to fund higher state spending, tens of thousands more teachers, and a 150,000 subsidised positions for young people.
Should he win, relations between Germany and France would become rather more strained.Should he win, relations between Germany and France would become rather more strained.
12.01pm: Belgium saw its borrowing costs climb this morning, at an auction of short-term debt.12.01pm: Belgium saw its borrowing costs climb this morning, at an auction of short-term debt.
It sold €2.58bn of three and six-month debt, towards the bottom end of its target of between €2.5bn and €3bn.It sold €2.58bn of three and six-month debt, towards the bottom end of its target of between €2.5bn and €3bn.
The six-month bills sold at a yield of 0.71%, jumping from 0.364% at an auction at the start of January (when investors were in cheery mood). The three-month bills sold at a yield of 0.506%, slightly higher than 0.429% earlier this month.The six-month bills sold at a yield of 0.71%, jumping from 0.364% at an auction at the start of January (when investors were in cheery mood). The three-month bills sold at a yield of 0.506%, slightly higher than 0.429% earlier this month.
Not alarming yields - but perhaps a sign that the optimism created by the ECB's €489bn LTRO last month is wearing off? Especially in the light of S&P's decision to downgrade Belgium's credit rating.Not alarming yields - but perhaps a sign that the optimism created by the ECB's €489bn LTRO last month is wearing off? Especially in the light of S&P's decision to downgrade Belgium's credit rating.
11.45am: Economist Shaun Richards warns today that there are signs of investors deserting the euro and into the safety of the Japanese Yen and the Swiss franc.11.45am: Economist Shaun Richards warns today that there are signs of investors deserting the euro and into the safety of the Japanese Yen and the Swiss franc.
He blogs that the Bank of Japan may soon be forced to intervene again to push the value of the yen down, while the Swiss franc is creeping close to the €1.20 limit set by the Swiss National Bank last year (when it effectively devalued the Swiss franc).He blogs that the Bank of Japan may soon be forced to intervene again to push the value of the yen down, while the Swiss franc is creeping close to the €1.20 limit set by the Swiss National Bank last year (when it effectively devalued the Swiss franc).
Richards says:Richards says:

We may see a sort of dance for a while as markets tempt it and of course we may see phases where the Euro strengthens and helps the SNB out. But recently Euro strength against other currencies has not been repeated against the Swiss Franc. If we hang around here then human nature being what it is....
We may see a sort of dance for a while as markets tempt it and of course we may see phases where the Euro strengthens and helps the SNB out. But recently Euro strength against other currencies has not been repeated against the Swiss Franc. If we hang around here then human nature being what it is....
He also isn't convinced that Greece will reach a debt deal, despite the optimism in Athens.He also isn't convinced that Greece will reach a debt deal, despite the optimism in Athens.
Hopes for a Greek debt deal have to face up to a one-year bond yield of 454% today! Thats 453% over Germany's! #gfc2 #euro #eurocrisisHopes for a Greek debt deal have to face up to a one-year bond yield of 454% today! Thats 453% over Germany's! #gfc2 #euro #eurocrisis
— Shaun Richards (@notayesmansecon) January 31, 2012— Shaun Richards (@notayesmansecon) January 31, 2012
11.21am: The latest Greek retail sales data shows that consumer spending continued to take a dive late last year.11.21am: The latest Greek retail sales data shows that consumer spending continued to take a dive late last year.
Sales by volume fell 8.9% year-on-year in November (details here), continuing a steady decline though 2011.Sales by volume fell 8.9% year-on-year in November (details here), continuing a steady decline though 2011.
Platon Monokroussos, economist at Eurobank, told Reuters the data showed that private spending continued to contract as Greeks hunkered down in the face of the recession, adding that:Platon Monokroussos, economist at Eurobank, told Reuters the data showed that private spending continued to contract as Greeks hunkered down in the face of the recession, adding that:
Increasing unemployment and austerity are likely to continue weighing on disposable incomes and consumer demand in the first months of 2012.Increasing unemployment and austerity are likely to continue weighing on disposable incomes and consumer demand in the first months of 2012.
Anxious retailers have even taken to playing 'spot the shopping bag' on Greek high streets -- read more here.Anxious retailers have even taken to playing 'spot the shopping bag' on Greek high streets -- read more here.
10.44am: Here's a video clip of David Cameron explaining why he refused to join the fiscal compact, but dropped his opposition to the European court of justice being allowed to police the new rules.10.44am: Here's a video clip of David Cameron explaining why he refused to join the fiscal compact, but dropped his opposition to the European court of justice being allowed to police the new rules.
Cameron said it was in Britain's national interest for eurozone countries to "get on and sort out the mess that is the euro". He also promised to take "appropriate action" if the new fiscal compact trampled on the single market.Cameron said it was in Britain's national interest for eurozone countries to "get on and sort out the mess that is the euro". He also promised to take "appropriate action" if the new fiscal compact trampled on the single market.
Tory backbenchers aren't placated, though. Mark Reckless MP told Sky News in the last few minutes that Cameron should hold an "in/out" referendum on Britain's membership of the European Union.Tory backbenchers aren't placated, though. Mark Reckless MP told Sky News in the last few minutes that Cameron should hold an "in/out" referendum on Britain's membership of the European Union.
Reckless also claimed that the European court of justice couldn't be trusted to enforce the new fiscal rules.Reckless also claimed that the European court of justice couldn't be trusted to enforce the new fiscal rules.
10.29am: News in from Athens where Helena Smith, our correspondent, says Greeks have woken up to the first signs of a faint glimmer of hope.10.29am: News in from Athens where Helena Smith, our correspondent, says Greeks have woken up to the first signs of a faint glimmer of hope.
Greek media are reporting that the long-awaited bond swap between Greece and its private sector creditors will almost certainly be concluded this week and, as one commentator enthused: "on very favourable terms for Greece. The interest rate, we are hearing, on the [new] bonds could be as low as 3%. This is very good news for our country and all of those who have so painstakingly worked on this deal."Greek media are reporting that the long-awaited bond swap between Greece and its private sector creditors will almost certainly be concluded this week and, as one commentator enthused: "on very favourable terms for Greece. The interest rate, we are hearing, on the [new] bonds could be as low as 3%. This is very good news for our country and all of those who have so painstakingly worked on this deal."
Lucas Papademos, who heads Athens' interim coalition government, told Greeks at a post-midnight press conference in Brussels, that "everything will, and must, be finished by the end of the week," referring to the bond swap, known formally as the Private Sector Involvement (PSI), and ongoing negotiations over a second bailout agreement for the country with visiting representatives from the EU, IMF and ECB officially known as the "troika". That has also brought a sense of relief - not least because every Greek now versed in the minutiae of economics, is acutely aware that both are aimed at making Greece's €350bn mountain of debt sustatinable.Lucas Papademos, who heads Athens' interim coalition government, told Greeks at a post-midnight press conference in Brussels, that "everything will, and must, be finished by the end of the week," referring to the bond swap, known formally as the Private Sector Involvement (PSI), and ongoing negotiations over a second bailout agreement for the country with visiting representatives from the EU, IMF and ECB officially known as the "troika". That has also brought a sense of relief - not least because every Greek now versed in the minutiae of economics, is acutely aware that both are aimed at making Greece's €350bn mountain of debt sustatinable.
In a nation as proud as Greece, the mass selling daily, Ta Nea, has highlighted the nascent sense of optimism with the headline "The No's [Nein] killed the commissioner," referring to the disapproval engendered by a German proposal that an EU commissioner, with veto powers over the Greek
budget, be installed in Athens.		In a nation as proud as Greece, the mass selling daily, Ta Nea, has highlighted the nascent sense of optimism with the headline "The No's [Nein] killed the commissioner," referring to the disapproval engendered by a German proposal that an EU commissioner, with veto powers over the Greek
budget, be installed in Athens.
For once the austerity weary nation feels it has won a battle on the frontline of its great economic war.For once the austerity weary nation feels it has won a battle on the frontline of its great economic war.
10.12am: Unemployment data for the whole eurozone has been released, and show that the jobless rate has hit its highest level since the euro was created, at 10.4%.10.12am: Unemployment data for the whole eurozone has been released, and show that the jobless rate has hit its highest level since the euro was created, at 10.4%.
The number of jobless across the eurozone rose by 20,000 in December, taking the total up to 16.469 million, the eighth successive monthly rise.The number of jobless across the eurozone rose by 20,000 in December, taking the total up to 16.469 million, the eighth successive monthly rise.
Howard Archer of IHS Global Insight warned that the pattern is likely to continue:Howard Archer of IHS Global Insight warned that the pattern is likely to continue:
Most labour markets are suffering, particularly in Greece, Portugal, Italy and Spain. And French unemployment is moving up worryingly appreciably.Most labour markets are suffering, particularly in Greece, Portugal, Italy and Spain. And French unemployment is moving up worryingly appreciably.
As reported at 9.18am, German unemployment has dropped to its lowest rate in 20 years, while peripheral countries such as Italy are suffering rising unemployment.As reported at 9.18am, German unemployment has dropped to its lowest rate in 20 years, while peripheral countries such as Italy are suffering rising unemployment.
9.51am: There's an interesting tale on the front page of the Financial Times this morning, predicting that the European Central Bank may pump another trillion euros of cheap loans into the banking sector next month.9.51am: There's an interesting tale on the front page of the Financial Times this morning, predicting that the European Central Bank may pump another trillion euros of cheap loans into the banking sector next month.
According to the FT, the €489bn of three-year loans made in December (which are credited with restoring market confidence and pushing down most bond yields), is just the start. Another auction is scheduled for 29 February, and euro banks could ask for twice as much.According to the FT, the €489bn of three-year loans made in December (which are credited with restoring market confidence and pushing down most bond yields), is just the start. Another auction is scheduled for 29 February, and euro banks could ask for twice as much.
"They could do another €1tn easily in February," said one senior banker. "It could be way more than that if things get worse in the markets.""They could do another €1tn easily in February," said one senior banker. "It could be way more than that if things get worse in the markets."
€1tn in extra loans would certainly be a worrying sign, suggesting that the European financial system has hit a very sticky patch. A Reuters poll yesterday predicted that the ECB would lend around €325bn.€1tn in extra loans would certainly be a worrying sign, suggesting that the European financial system has hit a very sticky patch. A Reuters poll yesterday predicted that the ECB would lend around €325bn.
9.44am: More City reaction, this time from Paul Donovan of Swiss bank UBS. Donovan, like Investec's Elisabeth Afseth, feels the summit made little progress (that's via journalist Olly Barratt)9.44am: More City reaction, this time from Paul Donovan of Swiss bank UBS. Donovan, like Investec's Elisabeth Afseth, feels the summit made little progress (that's via journalist Olly Barratt)
UBS's Paul Donovan: 'In line with most euro summits the details will be worked out later.'UBS's Paul Donovan: 'In line with most euro summits the details will be worked out later.'
— Olly Barratt (@ollybarratt) January 31, 2012— Olly Barratt (@ollybarratt) January 31, 2012
9.33am: David Cameron will make a statement to the House of Commons at 3.30pm today about yesterday's EU summit.9.33am: David Cameron will make a statement to the House of Commons at 3.30pm today about yesterday's EU summit.
As my colleague Andrew Sparrow points out in his Politics Live blog, the prime minister "has got some explaining to do" after dropping his objections to the eurozone countries using EU institutions to police their new fiscal union.As my colleague Andrew Sparrow points out in his Politics Live blog, the prime minister "has got some explaining to do" after dropping his objections to the eurozone countries using EU institutions to police their new fiscal union.
Conservative eurosceptics MPs are likely to give their leader a rough ride.Conservative eurosceptics MPs are likely to give their leader a rough ride.
The Daily Mail has already put the boot in – comparing Cameron to John Major – and claiming that he was "sent like a naughty schoolboy to the back of the class" in the family photo....The Daily Mail has already put the boot in – comparing Cameron to John Major – and claiming that he was "sent like a naughty schoolboy to the back of the class" in the family photo....
.... and they may have a point. Cameron is the distant figure on the back row, far right (so to speak)..... and they may have a point. Cameron is the distant figure on the back row, far right (so to speak).
9.18am: Germany's unemployment rate has fallen to a new post-unification low. But over in Italy, the unemployment rate has hit its highest level in at least eight years.9.18am: Germany's unemployment rate has fallen to a new post-unification low. But over in Italy, the unemployment rate has hit its highest level in at least eight years.
Data released in the last few minutes showed that the number of people out of work in Germany fell by a seasonally adjusted 34,000 to 2.85 million in January, a new 20-year low. That cuts the German unemployment rate to 6.7%.Data released in the last few minutes showed that the number of people out of work in Germany fell by a seasonally adjusted 34,000 to 2.85 million in January, a new 20-year low. That cuts the German unemployment rate to 6.7%.
Over the Alps, though, Italy's unemployment rate has jumped to 8.9%, the highest since national statistics body Istat began tracking the data in January 2004.Over the Alps, though, Italy's unemployment rate has jumped to 8.9%, the highest since national statistics body Istat began tracking the data in January 2004.
This shouldn't be a surprise. We've seen plenty of economic data recently showing that German business leaders are still quite optimistic about prospects in 2012, while consumer spending is holding up OK. In Italy, though, austerity measures are now kicking in and companies are already making cutbacks.This shouldn't be a surprise. We've seen plenty of economic data recently showing that German business leaders are still quite optimistic about prospects in 2012, while consumer spending is holding up OK. In Italy, though, austerity measures are now kicking in and companies are already making cutbacks.
As Bloomberg points out:As Bloomberg points out:

Fiat SpA, Italy's biggest manufacturer, shut down its Termini Imerese factory at the end of last year as part of a plan to reduce costs and improve productivity in Italy as sales in the country slump. The Turin-based company agreed with unions to pay about €21m to support early retirement for about 640 workers.
Fiat SpA, Italy's biggest manufacturer, shut down its Termini Imerese factory at the end of last year as part of a plan to reduce costs and improve productivity in Italy as sales in the country slump. The Turin-based company agreed with unions to pay about €21m to support early retirement for about 640 workers.
There was one crumb of comfort in the Italian data – the jobless rate for 15-24 year olds dropped to 31% in December from 31.2% in November.There was one crumb of comfort in the Italian data – the jobless rate for 15-24 year olds dropped to 31% in December from 31.2% in November.
9.08am: Eurozone countries will be barred from receiving financial help from the European Stability Mechanism unless they have already endorsed the fiscal compact. That is meant to encourage leaders to sign up quickly.9.08am: Eurozone countries will be barred from receiving financial help from the European Stability Mechanism unless they have already endorsed the fiscal compact. That is meant to encourage leaders to sign up quickly.
City analyst Gary Jenkins of Swordfish Research finds it somewhat ironic, though:City analyst Gary Jenkins of Swordfish Research finds it somewhat ironic, though:
We may have the novel situation where countries are being provided with monies to not only pay for the normal running of government but also their fines for fiscal indiscipline.We may have the novel situation where countries are being provided with monies to not only pay for the normal running of government but also their fines for fiscal indiscipline.
8.59am: Elisabeth Afseth, analyst at Investec, despairs at the failure of European leaders to achieve more yesterday.8.59am: Elisabeth Afseth, analyst at Investec, despairs at the failure of European leaders to achieve more yesterday.
Afseth argued that rather than showing "common purpose and direction", EU leaders treated us to another display of discord. Germany's aborted proposal to impose a European commissioner on Greece, and France's determination to launch a financial transaction tax on its own, left Europe looking fragmented. What a shame, she added, that they didn't achieve real progress by agreeing to enlarge the ESM.Afseth argued that rather than showing "common purpose and direction", EU leaders treated us to another display of discord. Germany's aborted proposal to impose a European commissioner on Greece, and France's determination to launch a financial transaction tax on its own, left Europe looking fragmented. What a shame, she added, that they didn't achieve real progress by agreeing to enlarge the ESM.
In a research note, Afseth wrote:In a research note, Afseth wrote:

What we got yesterday – we got more bickering at the sideline, agreement on a largely irrelevant treaty while the issue of the size of the ESM/EFSF was left till March. They could have used the opportunity to boost the size of the rescue fund now, building on the more positive market sentiment of late and in the process increased the chance of getting additional support from the IMF.
What we got yesterday – we got more bickering at the sideline, agreement on a largely irrelevant treaty while the issue of the size of the ESM/EFSF was left till March. They could have used the opportunity to boost the size of the rescue fund now, building on the more positive market sentiment of late and in the process increased the chance of getting additional support from the IMF.
I guess it could be described as a consistent approach to the crisis; a German focus on austerity and no agreement on anything else.I guess it could be described as a consistent approach to the crisis; a German focus on austerity and no agreement on anything else.
8.34am: If you're catching up on events in Brussels yesterday, here are the key points from the summit:8.34am: If you're catching up on events in Brussels yesterday, here are the key points from the summit:
• 25 countries endorsed the fiscal pact. They agreed to enshrine balanced budget legislation into their national law, with annual structural deficits capped at 0.5% of GDP. Transgressors face penalties of 0.1% of GDP, with fines being added to Europe's bailout fund, the European Stability Mechanism (ESM). The UK and the Czech Republic declined to sign.• 25 countries endorsed the fiscal pact. They agreed to enshrine balanced budget legislation into their national law, with annual structural deficits capped at 0.5% of GDP. Transgressors face penalties of 0.1% of GDP, with fines being added to Europe's bailout fund, the European Stability Mechanism (ESM). The UK and the Czech Republic declined to sign.
The new Treaty on Stability, Coordination and Governance (SCG) will come into force once it has been passed by the parliaments of at least 12 countries that use the euro.The new Treaty on Stability, Coordination and Governance (SCG) will come into force once it has been passed by the parliaments of at least 12 countries that use the euro.
• Euro area leaders confirmed that they will reassess whether the ESM, and its forerunner the European Financial Stability Facility (EFSF), have sufficient resource. They still plan to bring the ESM into force in July 2012.• Euro area leaders confirmed that they will reassess whether the ESM, and its forerunner the European Financial Stability Facility (EFSF), have sufficient resource. They still plan to bring the ESM into force in July 2012.
• EU leaders agreed to a new drive to stimulate growth and create employment across the region, particularly for young people. Unused development funds will be used to create jobs. They also vowed to help small and medium enterprises to get access to credit, and to use the Single Market as a key driver for Europe's economic growth.• EU leaders agreed to a new drive to stimulate growth and create employment across the region, particularly for young people. Unused development funds will be used to create jobs. They also vowed to help small and medium enterprises to get access to credit, and to use the Single Market as a key driver for Europe's economic growth.
• Leaders also opposed the suggestion that a 'commissioner' should be installed in Greece to ovesee its budget decisions. French president Nicolas Sarkozy warned that this would be undemocratic, as "the recovery process in Greece can only be enacted by the Greeks themselves."• Leaders also opposed the suggestion that a 'commissioner' should be installed in Greece to ovesee its budget decisions. French president Nicolas Sarkozy warned that this would be undemocratic, as "the recovery process in Greece can only be enacted by the Greeks themselves."
8.13am: European stock markets have opened higher this morning, but British banks are still under pressure.8.13am: European stock markets have opened higher this morning, but British banks are still under pressure.
The FTSE 100 has risen 48 points to 5719 (up 0.8%). with traders saying there is some relief that progress was made in Brussels yesterday, and optimism over the Greek debt talks.The FTSE 100 has risen 48 points to 5719 (up 0.8%). with traders saying there is some relief that progress was made in Brussels yesterday, and optimism over the Greek debt talks.
ARM Holdings (+6) and BSkyB (+2.9%) are leading the risers, after posting decent results this morning. But Lloyds (-2.7%), RBS (-1.2%) and Barclays (-0.5%) are among the biggest fallers though, defying a recovery in other European financial stocks.ARM Holdings (+6) and BSkyB (+2.9%) are leading the risers, after posting decent results this morning. But Lloyds (-2.7%), RBS (-1.2%) and Barclays (-0.5%) are among the biggest fallers though, defying a recovery in other European financial stocks.
Across Europe, Italy's FTSE MIB is 1.1% higher, Germany DAX is up 0.7% and the French CAC gained 1%.Across Europe, Italy's FTSE MIB is 1.1% higher, Germany DAX is up 0.7% and the French CAC gained 1%.
7.55am: On the economic front, the latest jobless statistics will show the state of the employment markets in Germany and Italy. There's also a couple of debt auctions to watch out for. Here's an agenda:7.55am: On the economic front, the latest jobless statistics will show the state of the employment markets in Germany and Italy. There's also a couple of debt auctions to watch out for. Here's an agenda:
• German unemployment data for January - 9am GMT / 10am CET
• Italian unemployment data for December - 9am GMT / 10am CET
• Eurozone unemployment data for December - 9am GMT / 10am CET
• Belgium auctions short-term debt - 10am GMT
• Hungary auctions short-term debt - morning....		• German unemployment data for January - 9am GMT / 10am CET
• Italian unemployment data for December - 9am GMT / 10am CET
• Eurozone unemployment data for December - 9am GMT / 10am CET
• Belgium auctions short-term debt - 10am GMT
• Hungary auctions short-term debt - morning....
+ Talks continue in Greece over its debt restructuring+ Talks continue in Greece over its debt restructuring
7.45am: Good morning all, and welcome to another day of rolling coverage of the eurozone crisis.7.45am: Good morning all, and welcome to another day of rolling coverage of the eurozone crisis.
Today we'll be digesting the impact of yesterday's EU summit. The fiscal compact is agreed (although the UK and Czech Republic are both refusing to sign up), and leaders have agreed that the European Stability Mechanism will come into effect from July.Today we'll be digesting the impact of yesterday's EU summit. The fiscal compact is agreed (although the UK and Czech Republic are both refusing to sign up), and leaders have agreed that the European Stability Mechanism will come into effect from July.
We'll be finding out whether economists, City analysts and political experts believe the decisions taken in Brussels will help Europe tackle the crisis. What do you think?...We'll be finding out whether economists, City analysts and political experts believe the decisions taken in Brussels will help Europe tackle the crisis. What do you think?...
...And how much trouble is David Cameron in with his eurosceptic backbenchers, having agreed that the European court of justice can police the fiscal compact?...And how much trouble is David Cameron in with his eurosceptic backbenchers, having agreed that the European court of justice can police the fiscal compact?
As usual, we'll be tracking events in Greece (where talks between the government and its creditors are still continuing), and Portugal.As usual, we'll be tracking events in Greece (where talks between the government and its creditors are still continuing), and Portugal.