Europe races towards a debt-day decision

As the eurozone debt crisis worsened overnight, with Spanish and Italian borrowing costs continuing to rise, Paris and Berlin were able to agree on only one thing: financial markets are now the enemy.

In Berlin, German Chancellor Angela Merkel warned that Europe was now “in a race with the markets” to turn itself into a full political union. Meanwhile, in Rome, French President François Hollande argued that Italy had been unjustly attacked by financial markets, and pushed for tighter controls on speculators.

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