Yet Another Euro Protection Plan Proposed

A separate budget for the euro zone with a central treasury and borrowing power

In an indication that union in Europe is still very much a work in progress, its top official on Friday suggested assembling yet another big gun to save the bloc's troubled common currency.

The European Central Bank has already promised to use its financial armory to buy unlimited quantities of bonds, and euro zone governments have pledged to fund a bailout "bazooka" worth €500 billion, or $650 billion.

On Friday, Herman Van Rompuy, the president of the European Council, made formal proposals for a third weapon to save the euro — a separate budget for the euro zone, perhaps equipped with a central treasury with borrowing capabilities, to combat sudden economic shocks and promote structural overhauls.