Clear Currency said that the euro is ignoring bad news, remaining "suprisingly resilient in the face of an every deteriorating environment." 09.04 Reuters has now got hold of the document prepared for this week's eurozone summit. The report was compiled by European Commission President Jose Manuel Barroso, European Council President Herman Van Rompuy, European Central Bank President Mario Draghi and President of the Eurogroup Jean-Claude Juncker (pictured below with Draghi). According to the newswire, it suggests the eurozone could create a treasury for the single currency and issue eurobonds in the medium term as the final stage of a fiscal union. Here are some other snatches from the report: In a medium-term perspective, the issuance of common debt could be explored as an element of such a fiscal union and subject to progress on fiscal integration Steps towards the introduction of joint and several sovereign liabilities could be considered, as long as a robust framework for budgetary discipline and competitiveness is in place to avoid moral hazard and foster responsibility and compliance The process towards the issuance of common debt should be criteria-based and phased, whereby progress in the pooling of decisions on budgets would be accompanied with commensurate steps towards the pooling of risks Several options for partial common debt issuance have been proposed, such as the pooling of some short-term funding instruments on a limited and conditional basis, or the gradual roll-over into a redemption fund 08.49 Jim Reid at Deutsche Bank points out that the markets are not expecting much from this week's summit: "After 3-4 days of lower markets it seems that expectations for this week's EU summit have been scaled back. Simultaneously the market has moved on to be worrying about global growth. He adds: Ahead of this summit it doesn't seem from Mrs Merkel's comments yesterday that she is softening her rhetoric. She said yesterday in Berlin that "I say quite openly: when I think of the summit on Thursday I'm concerned that once again the discussion will be far too much about all kinds of ideas for joint liability and far too little about improved oversight and structural measures." She also added that "euro bonds, euro bills and European deposit insurance with joint liability and much more" are "economically wrong and counterproductive." So the summit is likely to be one where several ideas are put on the table but that agreement on anything meaningful is likely to be low. It seems like the crisis needs to take another turn for the worse to focus the minds on a more radical agenda. 08.38 Ian Traynor, the Guardian's Europe editor, has got his mitts on a copy of the master plan for the future of Europe and the single currency. He's written a few tweets on this grand plan: 08.24 With Greece's new finance chief resigning yesterday, having spent the last few days in hospital, thoughts are turning to who will take up the mantle. Greek newspaper, Kathimerini, tweets: 08.09 The FTSE 100 had made modest gains at the open, rising almost 17 points to 5467. 07.56 Another chinwag is in the offing. French finance minister, Pierre Moscovici, has told France Info radio that he will meet with the finance ministers of Germany, Italy and Spain in Paris this evening ahead of the EU summit at the end of the week. "We want to work with Germany," Moscovici said, asked about the pressure on President Francois Hollande and German Chancellor Angela Merkel to reach an agreement on ways to curb the spiralling euro zone crisis. Tomorrow there is a meeting, which will be very important, between Francois Hollande and Angela Merkel and this evening I will receive the finance ministers: Mr. Schaeuble from Germany, Mr. Monti or Mr. Grilli of Italy and Mr. de Guindos of Spain along with the European Commissioner. We are in an active phase of preparation of this summit. 07.40 There are a couple of auctions today which traders will be keeping a close eye on. Spain is set to auction three-month and six-month bills, while Italy will sell up to €3bn in debt. The auction comes Spain and Italy's bond yields pushed higher on Monday amid fading hopes that this week's EU summit will come up with any decisive action to tackle the festering crisis. Michael Hewson of CMC Markets commented: With bond yields rising in Spain, Italy's yields have also been dragged higher as fears remain as to whether Italian PM will be able to continue along with his current reform program. Today's Italian bond auction of up to €3bn is likely to be another key test of demand with 10 year yields once again back above 6%, while Spain is also looking to sell three and six-month T-bills, just a week after selling one year paper at over 5%. 07.30 Figures this morning show that consumer morale in Germany unexpectedly edged up going into July, rising to 5.8 from 5.7 in June. Sentiment was boosted by improving income expectations, although worries over the eurozone crisis risk hurting consumption in the months ahead, a survey by GfK found. 07.27 Cyprus has become the fifth eurozone country to seek emergency funding from Brussels and with the country not specifying how much money it actually needs, speculation is rife in the Cypriot media as to what the amount will be. Reuters writes that Cypriot newspapers reported that the Mediterranean island, whose banking sector is heavily exposed to debt-crippled Greece, may need a bailout amount worth up to half the size of its economy. Cyprus' €17.3bn econom y is the third-smallest in the eurozone and there was speculation that its bailout could be worth up to €10bn. Cyprus' finance minister, Vassos Shiarly, has told Reuters that Cyprus needs to plug a €1.8bn - or 10pc of its GDP - regulatory capital shortfall in its second largest lender by June 30 and that potential aid could be more comprehensive to cover fiscal requirements. 07.25 And in another tale from the Pink 'Un, the FT has a story that the European Union could gain far-reaching powers to rewrite national budgets for eurozone countries that breach debt and deficit rules under proposals likely to be discussed at this week's summit. The proposals are part of an ambitious plan to turn the eurozone into a closer fiscal union, giving Brussels more powers to serve like a finance ministry for all 17 members of the currency union. They are contained in a report to be presented at the summit, which will also outline plans for a banking union and political union. 07.20 US billionaire, George Soros, has penned a comment for the Financial Times (£). He argues that Germany must change its "can't do" policy against immediately forging a consolidated European fiscal and banking union, or risk becoming "the centre of an empire" responsible for the eurozone's collapse. Here's a taster of what he had to say: At a meeting in Rome last Thursday, the heads of state of Germany, France, Spain and Italy agreed on steps towards a banking union and a modest stimulus package to complement the fiscal compact. But Angela Merkel resisted all proposals to provide relief to Spain and Italy from the excessive risk premiums prevailing in the market. This threatens to turn the EU summit this week into a fiasco that may well prove fatal because it will leave the rest of the eurozone without a strong enough firewall to protect it against the possibility of a Greek exit. 07.17 What do you think? Vote in our poll: Would Britain leaving the EU harm the economy? 07.10 Would Britain be better off within the EU, or outside? One of Britain's top bankers thinks there's safety in numbers, and has warned David Cameron of the City's fears over a British exit. Robert Winnett and Louise Armitstead report: Peter Sands, the chief executive of Standard Chartered, had a breakfast meeting with the Prime Minister on Monday during which he is understood to have raised concerns over a British breakaway. The warning was sounded amid growing calls from Conservative MPs for Britain to have an "in-out" referendum on the country's ongoing membership of the European Union. George Osborne, the Chancellor and Mr Cameron's key election strategist, is understood to be considering offering the pledge of a referendum as the centrepiece of the next Conservative manifesto. Labour is also considering a similar pledge. Peter Sands is pictured yesterday leaving Downing Street (Photo: Steve Back) 07.07 The downgrades came on a day when two countries got out their begging bowls to ask for bail-outs. Spain was first. It wants access to a €100bn pot for the country's ailing banking sector. However, it did not specify either the required amount or any conditions. Then came Cyprus. It wants cash to shore up its own fragile banking sector, which is heavily exposed to Greece. It also wants a billion or two for other "fiscal requirements," as the country's finance minister highlighted yesterday. Vassos Shiarly told Reuters: The amount will be as much as it may be needed to cover the recapitalisation and fiscal requirements These will be established after careful review during the next few weeks. 07.00 Rating agency Moody's downgraded 28 Spanish lenders last night, including Banco Santander, owner of the UK namesake. All of Spain's major banks were hit with cuts of one to four notches - worse than expected and sending several deeper into junk status. The move followed Moody's decision this month to slash the sovereign rating from A3 to Baa3, but also reflected the mounting risk of real estate losses, the agency said. Rival rating agency Standard & Poor's said this month that house prices in Spain could fall another 25pc before the market levels out.