War Of Words caused by the EU and its Euro

War Of Words As Euro's Fate Hangs In Balance

Heated words are being exchanged between world governments as further signs emerge that the euro might not survive its debt crisis.

David Cameron has called for the EU's rule book to be rewritten - and has previously promised to take back powers from Brussels.

But the British PM's stance has drawn a hostile reaction ahead of his visit to Germany this week.

Volker Kauder, the leader of German Chancellor Angela Merkel's political party, said Britain needs to stop "defending its own interests" and do more to help solve the crisis.

He also re-emphasised Germany's support for a financial transactions tax, which the British Government sees as an attack on the City of London.

Meanwhile, on a visit to Australia, US President Barack Obama said he was "deeply concerned" by events in the eurozone - with the problem being one of political will rather than a technical issue.

The bickering highlights growing frustrations outside the euro area that no solution to the debt crisis has been found.

There is a feeling among experts that Germany must put its financial might behind rescuing the single currency if the project is to be salvageable.

The markets have shifted their attention this week to countries at the heart of the euro, such as France.

That signifies the crisis has moved from the continent's economic periphery to place the currency itself under direct threat.

Despite the formation of a new transitional Government, Italy has seen its 10-year borrowing costs soar back above 7% - bailout territory.

Spain is coming under attack ahead of its general election this weekend over fears it will not meet its deficit reduction targets.

Its 10-year debt yield has been above 6.3%.

France is still paying under 4% for its 10-year borrowing - but that is more than double Germany's figure.

And its triple-A credit rating is being called into question amid demands for greater austerity and fears of French exposure to other eurozone countries' debt.

While Italy and Spain's bond yields fell back slightly on Wednesday morning, it is being put down to the European Central Bank buying swathes of Italian debt rather than any developments in solving the wider crisis.