Eurozone crisis: Economic strategy to be published

EUROPEAN commissioners are set to try to take control of the crisis threatening to engulf the eurozone when they publish their economic strategy today.

The move comes after the euro yesterday fell to a two-year low against the dollar as the markets panicked over reports that Spanish banks could not remain solvent.

However, the Commission is also concerned over the failure by EU heads of government to come up with a solution for the continued crisis in Greece where anti-austerity parties are set to do well in an election.

The strategy today will be aimed at coupling austerity with plans for growth and comes after President Francois Hollande’s victory in the recent French eectons where he opposed the austerity plans of his predecessor Nicholas Sarkozy and German Chancellor Angela Merkel.

The Commission’s specific recommendations will be issued for each member state including the UK which, if ratified by EU leaders in June, will become binding.

However, Tory eurosceptic backbenchers led by the No Turning Back group have already made it clear that they will oppose any attempt by the EU to impose an economic plan on Britain.