EU leaders seek stronger euro zone as Italy challenges rules

Portugal's Finance Minister Mario Centeno attends a news conference to announce the 2019 state budget in Lisbon, Portugal October 16, 2018. REUTERS/Rafael Marchante

BRUSSELS (Reuters) - European Union leaders will discuss on Thursday how to make the euro zone more resilient to crises, with the bloc's third biggest economy, Italy, putting new urgency into the talks by challenging EU budget rules that underpin the single currency.

Leaders of all EU countries except Britain are to take stock of progress in completing the euro zone's banking union and granting new powers to its ESM bailout fund as the 19 countries sharing the euro prepare for decisions to be taken in December.