Prompted by the deepening Greek debt crisis, the EU Council President says the euro zone needs to implement deeper collective discipline.
Speaking in Brussels, Herman Van Rompuy said that “for countries sharing the same currency, coordinating more closely and being subjected to stricter discipline is legitimate, but preserving the whole of the European Union is essential.”
Meanwhile Greek power workers are threatening to boycott a proposed new property tax announced by the government on Monday. The plan is to collect the tax through electricity bills.
The move is the latest attempt by the Greek Prime Minister to balance the books and ensure that his country receives the next bail-out package of up to 8 billion euros. Without it the fear is that Greece would be unable to avoid defaulting on its debts.
That possibility is causing widespread instability in the financial markets, especially in countries with a large exposure to Greek debt.