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MORNING BID EUROPE-EU founders warn against "selfish interests"

* A look at the day ahead from EMEA Markets Editor Mike Dolan and EMEA Chief Desk Editor Angus MacSwan. The views expressed are their own.

LONDON, Feb 10 (Reuters) - In an explicit acknowledgement that something is rotten in Europe, the EU's founder members are warning that the bloc faces critical times and has urged its members to set aside "selfish interests" to tackle problems such as immigration and terrorism. Meeting in Rome, Germany, France, Italy, Belgium, the Netherlands and Luxembourg pledged to pursue a closer union but said they were concerned about the state of the European project. As well as deep divisions over how to handle the refugee exodus from the Middle East and North Africa, the EU is also struggling to keep Britain as a member.

Certain of these issues are likely to come up today when NATO defence ministers meet in Brussels, with talks likely to be focused on Syria and Libya. The European Commission weekly meeting also focuses on the migration crisis a week ahead of EU summit on the same issue. No major decisions are expected but we are likely to hear more "more must be done" pressure on Greece and Italy, as well as Turkey.

President Francois Hollande's plan to strip French citizenship from people convicted of terrorism passed a first hurdle on Tuesday when the lower house of parliament backed controversial proposals introduced after Islamic extremists killed 130 people in Paris last November. A follow-up vote is scheduled for Wednesday. Some lawmakers expressed misgivings that the measure was too extreme but Hollande is under pressure to be seen to taking a tough stance in France's battle against terrorism. He is widely expected to reshuffle his cabinet in coming days in a bid to regain lost popularity.

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A showdown looms with Greek farmers who have vowed to drive their tractors to central Athens on Friday in a culmination of three-week long protests over pension reforms.

MARKETS AT 0745 GMT

The financial turbulence comes back full circle yet again as Janet Yellen testifies to Congress just as weeks and months of attrition in commodity prices, emerging currencies and global stock markets re-infects the banking system. Even (Taiwan OTC: 6436.TWO - news) though Deutsche Bank (Other OTC: DBAGF - news) 's woes heap pressure on the European banks in particular, that sort of stress does not have borders. The last near-death experience should have taught everyone that at least. Although nowhere near the problems of 2007/08 yet, the banking system, to the extent that it's been whacked by the expansion of negative interest rates and bond yields and creeping recession fears, is still sufficiently intertwined worldwide to worry all policymakers. According to drafts of documents preparing for the Shanghai G20 meeting on Feb 26, European finance ministers will call on the Group for urgent action to boost global economic growth at a time when an slowdown in China is sending shivers through financial markets. Even though Wall St steadied into the close ahead of Yellen's performance, Tokyo stocks lost more than 2 pct overnight again, adding to losses of more than 5 pct Tuesday and putting the Nikkei solidly into bear market territory with peak-to-trough losses now in excess of 20 pct. Ten-year US Treasury yields hovered above 1.70 pct after dropping more than 10 bps earlier this week. Steep dollar losses against the yen and euro, which saw the latter top $1.13 at one point overnight and the yen surge to 114.23/$, have steadied a bit into the European open too.

What can Yellen say? With further Fed rate rises this year now priced out of the futures curve, it's hard to how she could surprise with any more dovishness. That said, she doesn't need to bow just to financial market pressure to lean that way. There are plenty of signs of real economic weakness, not least an inventory/sales ratio from businesses that some say is at recessionary levels. Most analysts feel she will have to talk a fine line between remaining optimistic about the economy while being in no rush to add to rate hikes. Nods and winks will make a difference as always though. In line with pre-testimony positioning, European stock futures are set for steadier open too. Brent Oil, which suffered another severe relapse again on Tuesday after an extremely gloomy IEA report, has found a shaky foothold just above $30. French Dec industrial numbers echoed the German numbers yesterday with a surprising 1.6 pct drop.

Upcoming events/data/ themes for market reports on Wednesday:

- European corp events: SAP (Amsterdam: AP6.AS - news) , MedioBanca (Milan: MB.MI - news) , Hermes, Great Portland Estates, Bellway (Other OTC: BLWYY - news) , Voestalpine (Other OTC: VLPNF - news) , Akzo Nobel (Amsterdam: AKZA.AS - news) , Heineken (Swiss: HEI.SW - news) , ARM, Tullow Oil (Amsterdam: TU6.AS - news) , Telenor (EUREX: 1160189.EX - news) , Lagardere (Paris: FR0000130213 - news)

- France, Italy Dec industrial output

- UK Dec industrial output

- Norway, Denmark Jan inflation

- Iceland rate decision

- US Q4 earnings: Time Warner (Xetra: AOL1.DE - news) , Expedia (NasdaqGS: EXPE - news) , Cisco

- Fed's Yellen delivers semi-annual testimony to Congress

- US Treasury auctions 10-year notes (Editing by Sonya Hepinstall)