Eurozone Agrees on Debt Crisis Deal

Leaders from all 27 European Union nations have finally thrashed out a deal to solve the crisis started by concern over how Greece would cope with its debts. Perhaps most significant was eurozone leaders’ announcement that there will be tougher controls in future on the budgets of member countries.

Greece, the Irish Republic and Portugal have all required bailouts and this last week of talks was prompted by fears the crisis would spread to the larger economies of Spain and Italy.

Late on Thursday morning, the EU leaders meeting in Brussels agreed to expand the eurozone’s main bailout fund to 1tn euros ($1.4tn; £880bn).

Banks also accepted a loss of 50% on Greek debt, and they must raise more capital to protect themselves against losses resulting from any future defaults.

Source: BBC News

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