Euro crisis,secret reports on employment law,green cabinet splits and John Terry under fire-Wednesday's papers

Europe again makes the headlines this morning as the crisis in the Euro Zone intensifies.

According to the Times,thecomprehensive package to save the eurozone from collapse was unravelling last night, putting the single currency once again at the mercy of the markets.

The Guardian agrees adding that hopes that summits in Brussels would deliver a 'grand bargain' to bring an end to an 18-month sovereign debt crisis were fading fast.

The paper says that talks planned for this morning were cancelled, rumours surfaced of a collapse in Silvio Berlusconi's Italian government and the German chancellor, Angela Merkel, adopted a hard line in negotiations with her French counterpart, Nicolas Sarkozy, over the shape of a rescue package.

Whilst the Mail claims that Britian is going to be left with a huge bill for the Euro Zone adding that more than £18billion was wiped off the value of shares in London in just 20 minutes when EU officials also warned that a separate make-or-break leaders’ summit today in Brussels would also fail to end the crisis.

Away from Brussels,both the Independent and the Telegraph put the spotlight on other government activity.

The Telegraph claims that a confidential report is recommending that companies should be given the right to dismiss unproductive workers without explanation.

The radical recommendation to scrap the concept of unfair dismissal is made by Adrian Beecroft, a venture capitalist, in a report commissioned by David Cameron

.says the paper

Meanwhile the Indy says that the Chancellor is the leader of an increasingly influential faction within the Cabinet willing to sacrifice green policies if doing so is deemed helpful to economic growth.

Both the Mirror and the Sun turn their attention to England Captain John Terry.

Give me the truth is the headline in the former which says Anton Ferdinand turned up the heat on John Terry last night over his alleged racism rant adding that the QPR star said he wanted answers about their on-pitch clash despite the Chelsea ace insisting his remarks were taken out of context

The Sun says that as the police look set to investigate the claims Terry could be stripped of the England captaincy