Sign up to The Irish Times Archive (1859 - 2008)My Account »

Europe moved closer to a deal on tackling its debt crisis today, but time is tight to agree a comprehensive package before a summit at the end of March.

Draft conclusions from a meeting of European Union finance ministers in Brussels showed member states were willing to agree measures to keep their economies competitive, a core demand of Germany's.

That may in turn secure German backing for a strengthening of the European Financial Stability Facility, the temporary euro zone bailout mechanism set up in May, of which Ireland is a beneficiary.

But there remains concern in financial markets that failure to agree a stronger, more flexible EFSF as part of the package could reignite the sovereign debt pressures that forced Ireland and Greece into EU bailouts.

"There is work still to be done but we took good steps today in terms of clarifying the positions of member states and in terms of navigating the way forward for the adoption of the legislative package," European commissioner for economic and monetary affair Olli Rehn told reporters after the meeting.