According to a report in the Financial Times, Jean-Claude Trichet, president of the ECB, is preparing to outline today (June 21st 2010) a series of tough measures which it believes will restore confidence to the region.
These plans are said to include ruling out expulsions from the eurozone, bringing in higher penalties for fiscal failures and the introduction of a new agency to examine the spending decisions made by governments.
A 'traffic light' system is also due to be proposed, with its focus on upping surveillance on any country deemed to be losing its economic competiveness.
Last week, European Union leaders agreed that the results of stress tests carried out on banks will be made public.
European Council chief Herman Van Rompuy stated that the figures will be published by the latter half of next month "at the latest".
By Claire Archer