Eurozone crisis: Angela Merkel defends 'hard rules'

German Chancellor Angela Merkel has said the agreement reached by the 17 eurozone countries can be extended to other EU nations as required.

The joint Franco-German attempt to get all 27 member states to back changes to EU treaties was dropped following objections from the UK.

Mrs Merkel told journalists: "We couldn't make rubbish compromises for the sake of the euro, we had to make hard rules... but that will not stop Europe going forward together."