Euro zone leaders agree to deal

| October 28, 2011 | 0 Comments
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Following a tense summit in Brussels last night, it has been announced that euro zone leaders have reached a deal which they say will help resolve the growing debt crisis in the 17-member nation.

The deal will see the euro zone’s main bailout fund expanded to €1 trillion, while banks will accept a loss of 50% on Greek debt in exchange for recapitalisation.

European shares gained following the news while the euro was higher – up 1.3% against the dollar to $1.4005.

There have been fears that the debt crisis could spread to weaker nations, such as Italy and Spain.

Prior to yesterday’s summit, British Prime Minister David Cameron said one of his goals is to stop the “contagion” of the euro zone crisis from spreading to Britain.

Today, the Prime Minister welcomed the deal and said: “They made very good progress. They need to keep up the momentum and work urgently to fill in the remaining detail.”

Meanwhile, Chancellor George Osborne said the euro zone now appeared to be on the “right road”.


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