Even a watered-down deal would be significant as it will allow the bloc to move towards mutualising debts.

EU leaders agreed at an end-June summit to allow the bloc's rescue funds to stabilize bond markets by intervening directly.

EU leaders agreed at an end-June summit to allow the bloc's rescue funds to stabilise bond markets by intervening directly.

This will also allow the bloc's economies to adjust more rapidly to shocks without millions of people being turfed out of work.

This would ensure equal treatment of EU and foreign firms, and allow the bloc to check that market integrity and investor protection are being upheld.

On Wednesday, Britain and possibly France will try to persuade a European Union summit to allow the bloc's 27 member states to arm Syria's rebels.

One idea that kept cropping up was a large joint fund to allow the bloc's 19 members to absorb economic shocks, a so-called fiscal capacity.