Euro rises amid new proposals

Euro rises amid new proposalsThe Euro rose slightly against the dollar after following hints that the proposal to channel European Central Bank loans through the International Monetary Fund could bring in 200 billion euros for resolving the debt crisis in the Eurozone.

The new government in Italy has put forward to cut its deficit before a European summit to help resolve the debt crisis. The euro rose 0.1 percent to $1.3404 from $1.3391 on Dec. 2, when it had recorded a growth of 1.2 percent n the week.

The stability in the 17-nation currency ends a positive signal for the crucial mini-summit between the leaders of France and Germany, which is aimed at saving the currency. German Chancellor Angela Merkel is scheduled to meet French President Nicolas Sarkozy to discuss more stringent implementation of the Eurozone's deficit rules.

Italian Prime Minister Mario Monti will send a proposal that includes tax on luxury goods, resurrects a property levy on first homes, and asks workers to delay retirement o the country's parliament.

ECB President Mario Draghi had received a go-ahead from the euro-area finance ministers to work on the proposal to channel the finances of the ECB through the IMF. The funds from this route could be used to provide assistance to Italy or Spain.