ECB leaves rates unchanged, sees gradual recovery

By David Mchugh

Associated Press

Published: Wednesday, June 6 2012 7:50 a.m. MDT

The measures to be discussed at the summit at the end of June could include further steps to increase growth, moves toward more control over national government's spending and some form of shared borrowing to reduce the chance that one country would default.

Most of those steps would take years to implement and several are highly controversial. Germany has resisted common borrowing through so-called eurobonds, afraid spendthrift countries would overborrow using its stronger credit rating. A plan for stronger control of countries finances might ease that objection, however.

Officials from the European Union's executive, the Commission, unveiled their legislative proposals earlier Wednesday designed to strengthen the eurozone's ability to restructure troubled banks. However Wednesday's proposals, not expected to come into power until 2018, fall short of the full banking union pushed for by some European officials.

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