THE European Central Bank stepped up pressure yesterday for a joint fund to guarantee bank deposits in the eurozone, saying Europe needed new tools to fight bank runs as the bloc's debt crisis drives investors to flee risk.
The European Commission's top economic official, Olli Rehn, warned the single currency area could disintegrate without stronger crisis-fighting measures and tough fiscal discipline.
The twin warnings came as worries about Spain's banks and Greece's survival in the euro area pushed the euro to a two-year low against the dollar and hastened a rush into safe-haven assets including Austrian and French bonds.
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