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The European Financial Stability Facility (EFSF) has sold €3bn of debt in an oversubscribed auction, passing its first major test of 2012.

Hungarian bond yields soared above 10% yesterday after the government cancelled a bond swap auction, increasing fears the country will be the first in the EU to default on its debt.

The eurozone could start to break apart this year with countries including Italy and Greece potentially exiting the single currency, a leading think-tank has warned.

EU TREATY VETO

UK Prime Minister David Cameron has threatened to veto plans for an overhaul to the EU treaty on grounds it could damage British interests.

The European Union's economic affairs commissioner has warned leaders they have just ten days to save the euro.

Hungary has lost its investment grade credit rating from Moody's after the country went cap in hand to the International Monetary Fund (IMF).

Neptune's Rob Burnett is eyeing European banks for his equity portfolio as he believes the sector will be supported by full fiscal union - an option he thinks is becoming increasingly likely to rescue Europe from its debt crisis.

The European Union has slashed its 2012 growth forecast for the eurozone by 1.3% as the European Commissioner warns the risk of a new recession has increased.

Plans to tackle the eurozone debt crisis have stalled, with France and Germany clashing over the size of stimulus needed to secure the future of the eurozone.