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Q&A: EU crisis mechanism

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The EU has agreed to set up a permanent mechanism to avert Greek-style financial crises in the eurozone, in its biggest monetary reform since the euro was introduced in 1999.

An outline of the mechanism, which includes a permanent rescue fund, was presented to a summit of EU leaders in Brussels on 28 October.

Two of the EU's biggest states, Germany and France, proposed taking the plan much further - too far, in the opinion of some.

Why does the EU need this mechanism?

Isn't there a rescue fund already?

What's so radical about the new plan?

How much bite would these new sanctions have?

So what do the French and Germans want to add?

There is talk of rewriting the Lisbon Treaty...

All 27? What about the non-euro states?

What happens next?

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