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While everyone is talking about Greece, things happen elsewhere in the eurozone
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Daily Press Summary

Spiegel: Merkel wants work on new EU treaty to begin by end of the yearDer Spiegel reports that Germany is calling for a new EU treaty in order to make progress towards a political union with a firm legal grounding. Chancellor Angela Merkel is reportedly pushing for a convention – comprising representatives from national governments and parliaments, the European Parliament and the European Commission – to be formed by the end of the year, with a first meeting to be agreed at an EU summit in December. One of the main changes sought by Merkel is the provision for the ECJ to rule if national budgets comply with the EU's fiscal rules, which she was unable to secure in the inter-governmental fiscal treaty last year. The move is widely seen as a prerequisite for Germany to agree to any eurozone debt-pooling. However, Merkel faces strong resistance from other countries who fear a repeat of the 2005 European Constitution which was voted down in France and the Netherlands.
Spiegel EUobserver European Voice

German ECB Council members divided over ECB’s role in the eurozone crisisGerman ECB Executive Board member Jörg Asmussen yesterday confirmed that “Under the framework of the new programme, the ECB will only buy bonds with short maturities,” adding the caveat that, “The whole discussion will be led by the requirement that any concerns about treaty-violating state financing are dispelled. We will only act within our mandate.” Asmussen also stressed that he would like to see any ECB intervention in tandem with use of the eurozone bailout funds, saying, “The error with Italy…must not be repeated,” referring to the previous Italian government not taking full advantage of the time bought by the ECB over the past year.

Meanwhile, in an interview with Der Spiegel over the weekend, Bundesbank President Jens Weidmann, the other German member of the ECB Council, warned, “We shouldn't underestimate the danger that central bank financing can become addictive like a drug,” adding that proposals for greater ECB intervention were "too close to state financing via the money press”. Monday’s Telegraph reported that German Chancellor Angela Merkel said that it was good that Weidmann was reminding politicians of the constraints of the ECB, but added that she believed the ECB was still acting within its mandate. However, Der Spiegel reports that, behind closed doors, Merkel is less supportive of Weidmann’s stance, although the two have reached a truce in recent weeks.
FT CityAM WSJ Monday's FT Monday's Guardian Monday's Telegraph Spiegel IHT Monday's FT: MunchauReuters FAZ Expansion

Spain’s 2010-11 growth figures revised downwards;
Spanish Economy Minister: EFSF bond-buying request “is totally open”New figures published by Spain’s National Statistics Office yesterday revealed that Spanish GDP growth in 2010-11 was weaker than initially estimated, adding to fears that the country may be facing a longer than expected recession. Meanwhile, in an interview with the IHT, Spanish Economy Minister Luis de Guindos said that the request for the eurozone’s temporary bailout fund, the EFSF, to start buying Spanish bonds “is something that is totally open.” Spanish Prime Minister Mariano Rajoy will meet European Council President Herman Van Rompuy in Madrid today. In an auction this morning, Spain sold €3.6bn of three and six-month Treasury bills – with solid demand and much lower interest rates than in the previous auctions, reports Expansión.
El País El País 2 El Mundo Expansión Expansión 2 El Economista El Economista 2 FT CityAM WSJ Irish Times WSJ Monday's FT IHT: de Guindos

Austrian Chancellor: Greece can be given two or three extra years if it sticks to its commitmentsIn an interview with Österreich, Austrian Chancellor Werner Faymann said, “The most important thing is that Greece sticks to the reforms and the savings targets agreed with us. If this is guaranteed, I’m in favour of delaying [Greece’s] repayments. It can be a two-three-year delay – the experts should decide this.” Meanwhile, Alexander Dobrindt, the general secretary of the CSU - the Bavarian sister party of German Chancellor Angela Merkel’s CDU – said he sees “Greece outside the eurozone in 2013.”

After last week’s visits to Berlin and Paris, Greek Prime Minister Antonis Samaras is today expected to resume talks with his coalition partners over the €11.5bn cuts for 2013-14, reports Kathimerini.

Separately, Greek government officials told Reuters that a two-year extension of Greece’s adjustment programme would create a financing gap of less than €18bn, which Greece could cover by issuing Treasury bills rather than demanding more money from its eurozone partners and the IMF. Dutch caretaker Prime Minister Mark Rutte said during a TV debate, “I’m against [a third Greek bailout]. We helped them twice, they must now stick to the agreement. There can be no money on top of that.”
WSJ FT European Voice AFP Kathimerini Les Echos Expansión Spiegel Independent Österreich: FaymannHandelsblatt FTD La Tribune Kathimerini 2 Kathimerini 3 Süddeutsche De Tijd Sun: Pryce

France and Germany have agreed to form a working group to draw up plans for eurozone banking and fiscal union, as well as proposals to boost growth and competitiveness. The finance ministers of the two countries will meet every two weeks.
FT Reuters EUobserver Guardian FTD Spiegel FT: Gros & Mayer

Kleine Zeitung reports that Austrian Finance Minister Maria Fekter has said that “We need a vehicle that would allow for the exclusion of eurozone member states if they become a permanent burden for the others.” However, she acknowledged that such a change would not be implemented for at least five years.Kleine Zeitung

The Observer has obtained a letter to David Cameron and Nick Clegg from former police and intelligence chiefs who warn that the UK's ability to combat international crime could be severely limited if the Government chooses to exercise its block opt-out from EU crime and policing law in 2014.Observer Open Europe research

Reuters reports that it will now be at least October before the EU’s law on implementing the Basel III banking standards is ready.Reuters

The FT reports that French Prime Minister Jean-Marc Ayrault has warned members of his ruling Socialist party and its Green allies against opposing ratification of the EU’s fiscal discipline treaty in October. A CSA poll for L’humanite has found that 72% of French voters wish to see a referendum before ratification.Monday's FT Reuters L’Humanité  

The EU-IMF-ECB Troika begins its fifth monitoring mission in Portugal today. The Portuguese government may ask for a relaxation of its deficit target for 2012, after data published by the Portuguese Finance Ministry last week revealed that the country will not be able to bring its deficit down to 4.5% of GDP by the end of the year unless additional austerity measures are adopted.Jornal de Negócios RTP Il Sole 24 Ore

The Sunday Telegraph reports that retailers are seeking to avoid an EU ban on incandescent light bulbs due to come into force on 1 September by using a loophole for bulbs intended for “industrial use”.Sunday Telegraph