EU commission chief Barroso has said he wants Greece to stay in the euro, after one of his commissioners spoke of plans for it to leave and another one said an exit would not be so bad.

Greek talks on a vital €130 billion bail-out have gone into overtime as its government struggles to secure the backing of political parties for more spending cuts.

Germany has ruled out any extra contribution from national governments or the European Central Bank to the second Greek bail-out - as requested by the Greek government. Meanwhile, sources close to the negotiations speak of a €15bn funding gap.

Euro-area banks are becoming less happy to lend and consumers are more reluctant to borrow, according to an authoritative new survey.

The EU's new fiscal compact has caused a political split in the Czech Republic and calls for referendums or re-negotiation in Denmark, Ireland and France.