Uncampaign News

Officials from the 17-nation eurozone are holding another set of talks Tuesday and Wednesday in an effort to renew faith in their continental currency, amid more negative financial news.

The bank-led changes of governments in Greece and Italy, two of Europe's most economically troubled countries, have not been enough to reassure markets that the European Union has a handle on its sovereign debt and banking crisis. In new signs of doubt, Italian bond rates are soaring. Last week, credit agencies lowered their ratings for Belgium, Portugal and Hungary. And lending among European banks is shrinking.

As officials meet in Brussels on Tuesday and Wednesday, ideas are circulating for more fundamental fiscal changes. France and Germany want a stronger fiscal union among the 17 nations sharing the euro currency, with stricter budget commitments by member states. France's finance minister, Francois Baroin, outlined the idea on Tuesday.

Speaking on French radio, Baroin said the European Union should have two objectives: restoring global confidence in the short term and more budgetary and fiscal integration in the longer term.

Another option is eurobonds, essentially a way in which eurozone members guarantee each other's debts, which EU finance ministers are also expected to discuss. But the idea is opposed by Germany, the most powerful EU member.

Berlin also opposes reinforcing the powers of the European Central Bank, which would make it a so-called lender of last resort for the region.

Even if EU nations can agree on some of these ideas, they will take time to implement, said Karel Lannoo, the chief executive officer of the Brussels-based Center for European Policy Studies.

"There are short-term issues which have to be decided almost immediately, like preventing the contagion from the solution of Greece, writing off part of its debt, from spreading to other countries," said Lannoo. "And long-term solutions, like seeing whether we can have a federal model, like you have in the United States, of financing the debt of members of the eurozone."

Critics have said that European leaders have been too slow and timid in addressing the growing eurozone crisis this year. U.S. President Barack Obama raised concerns, while meeting Monday with top EU officials in Washington, that Europe's problems may become America's problems.

"This is of huge importance to our economy if Europe is contracting or if Europe is having difficulties," said Obama. "Then it is much more difficult for us to create jobs here at home because we send so many products and services to Europe. It is such an important trading partner for us."

There exists speculation that one or more members, starting with debt-strapped Greece, may leave the currency zone, triggering a domino effect. But Lannoo, for one, believes the eurozone will continue through the difficulties.

"Basically, I think there is no way back. You start to see some studies that look at the cost of a breakdown of the eurozone," said Lannoo, "the more you read about these things, the more you see this is almost unimaginable."

More bailout money for Greece and enlarging the EU bailout fund are also on the ministers' agenda. As pressure mounts for leaders to resolve their debt crisis by the year's end, the focus is on a December 9 European summit.