16 Nov 2012

Europe entering next stage of euro repair job

8:05 pm on 16 November 2012

European leaders are preparing for the next phase of their repair of the euro at a summit next month.

Radio New Zealand's economics correspondent says contracts between EU agencies and elected governments setting out limits on deficits are already on the agenda.

Germany wants to go a step further, with Brussels having veto powers over national budgets.

Gilbert Marchelwitz, from the European Economic and Social Committee, says the continent's governance is being redrawn.

European Policy Centre economist Janis Emmanouilidis of Brussels says national parliaments are already being sidelined.

But he says fixing the original flaws in the euro that led to the crisis is not a short-term project.