The European Union reached a landmark deal on Thursday to make the European Central Bank the bloc's top banking supervisor, giving EU leaders greater confidence that they are gaining the upper hand over the Euro zone's debt crisis.
German Chancellor Angela Merkel demanded stronger central powers for the European Union's executive to veto national budgets that breach EU rules, risking a clash with close ally France at a summit of the bloc's leaders.
Chancellor Angela Merkel said on Tuesday that Europe could only hope to come out of its crisis stronger and compete in a globalized world if its members pressed ahead with painful reforms and moved to more responsible budget policies.
French and German leaders have stressed they will remain committed in tackling European issues on the 50th anniversary of a post-WWII reconciliation speech. Chancellor Angela Merkel and President Francois Hollande made the pledge in the German city of Ludwigsburg.
Angela Merkel is seeking help from her estranged, former mentor Helmut Kohl, architect of the Euro, to restore voter faith in the European project before next year's election.
Chancellor Angela Merkel defended the European Central Bank on Friday after its plan to buy the debt of troubled Euro zone states stirred outrage in Germany and threats from some in her own party to try and block the scheme.
Asian shares looked set for their biggest daily gain in nearly five weeks on Friday after the European Central Bank outlined its bond-buying scheme to help calm the Euro zone's debt crisis, while firm US data fed speculation of a strong jobs report later in the day.
Spain will consider seeking extra aid from Europe on top of a 100 billion Euro rescue of its financial sector but does not see any need for new conditions, Prime Minister Mariano Rajoy said in an interview published in European newspapers.
China has signed a deal to buy 50 planes worth 3.5bn dollars from Europe's Airbus. The agreement is part of a slew of trade deals signed by German Chancellor Angela Merkel at the start of a two-day visit to China.
German leader Angela Merkel is due to hold top-level talks Thursday on her second visit to China this year, with Europe's debt crisis taking centre stage as it begins to drag on the two global powers.