Debt crisis: EU summit - live - Telegraph Members of Greece's Communist party march in Athens (Photo: Reuters) 10.21 Meanwhile, Spanish bad bank loans have hit a fresh high, with more than one in ten borrowers now behind on their payments. Bad debts (where borrowers are more than three months behind on repayments) climbed to 10.51pc of total lending, according to Bank of Spain data, the highest since records began in 1962. 10.16 Commenting on the auction, Nicholas Spiro at Spiro Sovereign Strategy, said: Sentiment towards Spain has never been more externally driven. Price action has nothing to do with Spain's fundamentals which, notwithstanding a significant improvement in external competitiveness, are deteriorating by the day. Spain's debt market has become a proxy for the perceived credibility of the ECB-backed fiscal backstop for Spain and Italy. Today's auction was well received because the markets believe the key domestic and external pieces for a bond-buying programme for Spain are falling into place. Demand held up well, despite weakening for the 10-year note, and yields fell on all three maturities on offer, with a notable sub-5.5% yield on the 10-year bond. While political pressure on Spain to request a bond-buying programme is mounting, market pressure on Spain is waning. The decision by Moody's not to "junk" Spain has, paradoxically, made it even less likely that the Rajoy government will apply for a bond-buying programme any time soon. Madrid still has serious reservations about the conditions and effectiveness of any bond-buying programme and feels it has more to gain from deferring a request for aid. 10.07 Spain's borrowing costs have fallen sharply at a bond auction this morning. The country sold €1.5bn of four year debt at average yields of 3.977pc. This compares with 4.603pc at a previous auction in September. It also sold €1.5bn of 10-year debt at average rates of 5.458pc (v.5.666pc), and €1.6bn of three-year bonds at average yields of 3.227pc (v.3.676pc). Demand waned slightly on the longer-dated bond, with 1.9 bidders for every bond on offer. The four year bond had a bid-to-cover ratio of 2.6 (v.1.8). 09.55 The eurozone will return to growth next year, according to the EU's commissioner for economic affairs. Olli Rehn told a conference in Brussels that there would be "a slow and subdued recovery," and that reforms would have a negative impact on growth. Mr Rehn also called for closer eurozone ties, but said that eurobonds could not happen until leaders agreed to pool more decision making. 09.52 Anthee Carassava is on the ground in Athens for us. She writes: Thursday's protests are part of a 24-hour nationwide strike the country's two biggest labour unions have organised as European leaders meet in Brussels to decide the fate of the single currency. It is the second job walk out millions of Greeks have taken to in three weeks; the 20th since the financial crisis here erupted nearly three years ago. "Just once," said Yannis Panagopoulos, head of the GSEE private sector union, "the government should reject [international] lenders" absurd demands. Agreeing to catastrophic measures means driving society to despair and the consequences as well as the protests will be indefinite. From taxi drivers to doctors and diplomats, the strike is expected to paralyze an already suffocating economy. Ships remained docked, hospitals were operating on skeleton staff, and dozens of domestic and international flights face cancellations leaving travelers stranded as air traffic controllers joined the protest, keeping aircraft grounded and the country isolated from the rest of the world for three hours. At least 4000 police have been deployed in the city centre alone. At least 12 buses of riot police and three water canons were propped outside parliament, shielding the building -- a favourite target of protests -- from militant demonstrators. 09.44 Meanwhile, it looks like a quiet day so far in Athens, where unions have called a general strike: A pedestrian passes closed shops (Photo: AP). A man walks in front of trolleybuses parked at a depot on Thursday morning during a 24-hour strike (Photo: Reuters). 09.15 Mrs Merkel added that the "contours" of a stability union were already visible, and that closer financial co-operation was needed in Europe. On a banking union, she said that the quality of supervision came before speed. 09.08 Nevertheless, it's in Greece and Europe's interest that the country remains in the euro. Mrs Merkel also said that Antonis Samaras would present an interim report on the discussions between European debt inspectors and Greek representatives over fresh budget cuts. The meeting ended yesterday, with all parties stating that the main cuts had been agreed. 09.01 She said that she wanted Greece to remain in the euro, but that too many reforms were being implemented at a "snail's pace." She also mentioned the need to tackle Greek corruption, and repeated that the country needed to fulfil its promises. Mrs Merkel said that it would be "fatal" if euro governments were to relax on reforms after the European Central Bank said it was prepared to buy government bonds. German Chancellor Angela Merkel addresses the German lower house of parliament on Thursday (Photo: Reuters). 08.59 Angela Merkel has addressed parliament ahead of today's meeting, where she has repeated that the crisis won't be resolved overnight and that this week's summit won't be the last to tackle the crisis. 08.51 It's EU summit day. This means one thing: be prepared for a long night. It all kicks-off at around 4pm when leaders, including David Cameron, arrive in Brussels for their monthly jaw-jaw.