No agreement yet at European summit

As the European Union summit currently underway, all eyes are on how the summit expects to address the increased tensions in the region's economy.

Though the summit is expected to address the region's economic difficulties, no tangible agreement has emerged so far.

The meeting is expectedly focusing on the financial crisis, but there have been no signs of any comprehensive plans that financial experts say are needed to beat back the unfolding turmoil.

German Chancellor Angela Merkel, tried to re-assure markets on Wednesday, insisting that no country in Europe would be "abandoned", the euro is being defended.

As tensions increase across Europe, there is little indication that European leaders were moving any closer to agreement on complete long-term stability.

 Mark O'Sullivan, director of dealing at Europe's leading non-bank provider of international payment services, Currencies Direct says, ''As we enter the last few trading days of the year the lack of liquidity is once again causing problems for the Euro, another threat of a downgrade for Spain has not helped the situation.

"It's highly unlikely traders will want to put on any further positions over the festive period and this will only put more pressure on the Euro.

"Any talk by politicians will only be seen as window dressing with the once again increasing yields on Spanish and Portuguese debt, laying the foundations for a very difficult 2011 for the single currency.''