German Chancellor Merkel: We need more than words

Germany's Chancellor Angela Merkel has said it is time for action to deal with the eurozone crisis, saying that the situation requires "more than words alone".

Speaking ahead of Friday's crucial EU summit, Mrs Merkel said that is was time for "constitutional changes in the common institutions".

As Europe's largest economy - and biggest contributor so far to the bailouts of Greece, the Irish Republic and Portugal - Germany's view going into the talks is crucial.

Mrs Merkel has called for a new EU treaty, with more power in controlling the finances of wayward nations.