German chancellor proposes divisive new fiscal treaty

The Guardian reports that Germany is to propose a new treaty widening EU budget powers amid speculation about a Greek exit from the eurozone following Berlin's refusal to allow Athens more time to implement austerity measures.

The paper says that opinion on the new treaty is divisive, and that most member states are against an idea which many feel would reshape the EU in Germany's image.

According to the Irish Times, one of the main priorities of a new treaty would be to allow the European court of justice to "oversee member state budgets and impose sanctions for deficit rule breaches".

German leader Angela Merkel said that the eurozone crisis had reached a "decisive" phase, with officials close to the leader lobbying for a December date to open a new European convention, the paper says.

Deutsche Welle reports that Merkel's European affairs advisor Nikolaus Meyer-Landrut warned that "individual nations' authority over their own finances could be diminished" if the treaty were ratified.