A confidential paper, circulated by European Council president Herman Van Rompuy, proposes empowering the commission to impose austerity measures.

Former German chancellor Gerhard Schroeder has called for the creation of a "United States of Europe", saying the bloc needed a common government.

Angela Merkel has opposed eurobonds, which would pool the 17 eurozone nations’ debt, but left the door open to a change in policy at a later date.

SA’s Treasury on Wednesday reopened its $1,5-billion 2019 Eurobond issued in May to raise an additional $500-million, a spokesperson said.