Today's front pages

Romania's government began impeachment proceedings to suspend President Traian Băsescu. It accuses him of violating the country's constitution and overstepping his authority. Impeachment would be then put to a national referendum. The Bucharest daily writes that the European Commission could postpone until September its report on Romania's legal system to take into account the recent controversial measures. Bucharest's accession to Schengen hinges on progress in this field.

Romania, danger of implosion – Evenimentul zilei

The European Central Bank has lowered its key interest rate to a record level, but has ruled out buying national debt on the secondary markets. The Madrid Stock Exchange dropped 3% and the spread on Spanish 10 year bonds and the benchmark German bund went back over 5.38%.

Disappointment — ECB confines itself to lowering rate to 0.75% – La Vanguardia

Now that the the ECB has lowered its key interest rate to 0.75%, the cost of mortgages and businesses are to reach a record low. Experts argue that this will not help the national economy because Germany does not need low rates to grow, and banks in southern Europe will continue not to lend. The only winners are the banks that can refinance at lower rates.

Money in eurozone cheaper than ever – Süddeutsche Zeitung

In the midst of a world economic crisis, Poland congratulates itself on being a “green island” of prosperity. In 2011, its GDP increased 4.3% compared to the EU’s 1.5%, and GDP per capita reached 67% of the EU’s average, surpassing that of Hungary at 66%. “If we keep up this high tempo of economic growth, we will catch up with Greece and Portugal in the next couple of years”, enthuses the Warsaw daily.

An even greener island — Poland grows faster than EU – Dziennik Gazeta Prawna

Portugal's Constitutional Court has ruled that the government's plan to limit extra holiday and Christmas pay for public sector workers was unconstitutional. All public and private sector employees receive an extra month's salary at this period. The court ruled that as the plan only applied to the public sector, it violated the "principle of equality." Portugal must cut some 1.2bn euros off its budget deficit by next year as part of a bailout deal from the EU/ECB/IMF troika. PM Pedro Passos Coelho has announced that the cuts will thus be extended to the private sector.

Passos admits extending public cuts to private – Diário de Notícias

According to the Athens daily, the EU/ECB/IMF troika has adopted a hard line towards Greece, insisting on more austerity before PM Antonis Samaras can hope to renegotiate the country’s stringent bailout terms.

Tough start with Troika – I Kathimerini