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The Brussels summit also confirmed that NATO will take full command of the military operation over Libya within nike running shoes  days.

Here's our Europe correspondent Emma Alberici.

EMMA ALBERICI: In the past six months, EU leaders have bailed out Greece then Ireland. They thought the worst of their economic problems was over, they were wrong.

The single currency was in a state of upset even before the Portuguese prime minister Jose Socrates resigned. He went to Brussels anyway in an attempt to convince the heads of the EU that Lisbon can pay back its debts without help from the international community.

JOSE SOCRATES (translated): I hope the markets can understand that Portugal is a country very much engaged in the European Union and with the single currency. The country will not only do its best not to upset the single currency but it will also do its best to defend itself.

EMMA ALBERICI: But financial markets aren't buying that. Overnight the cost of Portuguese borrowing soared to eight per cent, almost three times what Germany pays for its 10 year loans.

Berlin is the EU's chief banker. Chancellor Angela Merkel is running out of patience with her smaller profligate euro partner.

(Angela Merkel speaking)

She told reporters in Brussels that the five opposition parties in Lisbon must decide whether they will back the government's latest austerity package, the fourth in less than 12 months.2011 nike running shoes online

It's in her interest for states like Portugal to regain their economic health - 40 per cent of Germany's exports go to EU countries. Which is why she supported measures to build a permanent rescue fund and co-ordinate the economic management of the 17 countries that share a common currency.

Also speaking at the EU summit was French president Nicolas Sarkozy, who would not be drawn on how long the Libyan campaign might take but he confirmed that two Arab nations have joined the coalition, with the United Arab Emirates sending 12 planes and Qatar contributing a further six to the effort.

NICOLAS SARKOZY (translated): I have had the opportunity to talk about what happened in Srebrenica in 1993. Eight-thousand people were murdered in conditions, you know full well, because the international community did not at the time gauge the danger and did not take the measures to prevent that massacre. Imagine what would have happened had the coalition had not acted. Imagine what would have happened in Benghazi.

EMMA ALBERICI: Britain's foreign secretary William Hague says the coalition is now confident that responsibility for carrying out the entire UN mission will shift to NATO in the coming days.buy Reebok EasyTone online,
WILLIAM HAGUE: So I think within a matter of days NATO will be able to command the whole operation with of course the input from Arab nations who are also taking part.

EMMA ALBERICI: Winning over Turkey was considered pivotal in the race to put NATO in charge but it's understood that there is still tension between those in the military alliance who want boots on the ground in Libya and those, like Turkey, who believe that such an escalation in the conflict would contravene the UN resolution.