Talk of possible further fiscal consolidation in the EZ helped steady the euro. Over the weekend financial press reports suggested that European leaders are considering the creation of a central European authority to manage euro area finances, as well as an expansion of power for the European Commission, European Parliament and European Court of Justice. Such policy would move the EZ towards a much more integrated fiscal union providing much better credit support for the region including the prospect of Eurobonds.
http://www.fx360.com/commentary/boris/7673/risk-fx-stabilizes-on-talk-of-fiscal-union.aspx
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