European Central Bank President Jean-Claude Trichet warned of threats to the financial system as the conflict among political leaders intensified over how to extricate Europe from the debt crisis.

"The crisis has reached a systemic dimension," Trichet told European lawmakers in Brussels today. "Sovereign stress has moved from smaller economies to some of the larger countries. The crisis is systemic and must be tackled decisively."

European officials are toiling to meet an end-of-month deadline set by French President Nicolas Sarkozy to get to grips with the crisis, which has propelled Greece to the brink of default, shaken world markets and fueled speculation that the 17-nation currency might not survive in its current form.