The euro zone will go through a critical 10-day period during which it has to come up with a credible financial plan to protect larger economies in the EU and to tighten up economic discipline among its members, Dow Jones reported.
At a summit scheduled for December 9, the EU leaders will discuss changes to the European Union treaty proposed by French President Nicolas Sarkozy and German Chancellor Angela Merkel. The amendments will aim to strengthen fiscal discipline in the union. The increasing risk of Italy sliding into a funding crisis will also feature high on the agenda of the talks among EU leaders next week.
A monthly survey whose results were announced last week showed that the contraction in the euro zone manufacturing sector deepened in November, increasing pressure on the European Central Bank to relax its monetary policy.