- BayBak, Voice of a Nation - http://www.en.baybak.com -
Eurozone bends the rules to save single currency
BayBak, Azerbaijan | 328 days ago | Friday, 29th June , 2012 , 16:17 [pm] | International
|.|| The blocâ€™s future permanent bailout fund, the ESM, for instance, will be able to inject aid directly into banks from next year â€“ without increasing a countryâ€™s budget deficit.
â€œLast night, we agreed that
At the end of a two-day summit, the eurozone has adopted a more flexible approach to tackling its crippling debt crisis.
The blocâ€™s future permanent bailout fund, the ESM, for instance, will be able to inject aid directly into banks from next year â€“ without increasing a countryâ€™s budget deficit.
â€œLast night, we agreed that under certain circumstances and under certain conditions, the ESM could recapitalise banks directly,â€ EU Council President Herman Van Rompuy told reporters.
â€œThe biggest and most important condition is setting up a single, supervisory mechanism for banks and eurozone leaders have asked the council to work in a very speedy way so that we can have results by the end of the year. This is a major breakthrough, I said it this night. It is a first step also to break the vicious circle between banks and sovereigns.â€
Eurozone leaders also agreed to bend their aid rules to bring down borrowing costs for troubled member states.
The deal is widely seen as a political victory for embattled Italy and Spain over Germanyâ€™s Angela Merkel, who had brushed aside any need for such emergency measures earlier this week.euronews, Voice of a Nation