The European Central Bank should use its mandate on inflation to intervene in the Eurozone, according to Jim O'Neill, chairman of Goldman Sachs asset management. Speaking on the programme, Mr O'Neill said that this approach was the only alternative to continuing austerity.

Andreu Mas-Colell, who is the economics minister for Spain's autonomous region of Catalonia, said that Madrid would have to bail out a number of Spanish regions which are currently unable to cover wages or debt payments.

He told Today presenter Evan Davis that current austerity measures within the Eurozone area were "killing the patient."

The Moody's credit-rating agency has downgraded the economic prospects of a number of Eurzone economies including Germany and the Netherlands.

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