The eurozone deficit and debt crisis has pitted politicians against financial markets in a blame game that reveals failings on both sides, observers say.

Political leaders have denounced speculators as predators who thwart economic reform plans.

But those who defend the markets say they are largely made up of prudent insurers and pension funds that protect the savings of ordinary people.

As governments around the world consider greater market regulation, investors have called on political leaders to sort out their public finances to ensure a sustainable recovery can take hold.

German Chancellor Angela Merkel has spoken of "a battle of politicians against the markets" and some peers have accused speculators of attacking the vulnerable eurozone economies of Greece, Portugal and Spain.

French President Nicolas Sarkozy vowed to "mercilessly combat speculation" and warned those who bet against eurozone partners would soon "know once and for all what lies in store for them".

The EU and International Monetary Fund has unveiled a €750 billion plan to ensure EU members could refinance debt and underpin their sovereign ratings on capital markets.

Markets were impressed by the figure, which comes on top of another €110 billion for Greece alone.

But some observers have wondered if governments will be able to rein in deficits and debt without driving economies into the dumps and sparking social strife.

And some economists have questioned the European Central Bank's independence after it broke a taboo by buying government debt as part of the rescue plan.

Pressure has eased on public debt for now, but markets are still on edge.

Last week, the euro plunged to around $1.2350 as investors examined the eurozone's economic prospects amid reports of squabbling between France and Germany, two of the zone's economic giants.

Well before the Greek crisis erupted last year, one German politician had described speculative investment funds as "locusts".

They have since been compared to packs of wolves and vultures, and UniCredit chief economist Marco Annunziata warned last week of a "witch hunt".

"Demonising markets has been a running theme in the rhetoric of EU policymakers since the beginning of the debt crisis," he complained.

Analysts and media have not spared politicians either, however.

After French Finance Minister Christine Lagarde said markets now understood the eurozone would defend Europe's single currency, Saxo Bank chief economist David Karsbol retorted that the EU measures would in fact weaken the euro.

"We know that the French politicians have zero understanding of even simple market concepts, but this is beyond ridiculous," Mr Karsbol said.