March 11, 2011Euro zone leaders strike deal on debt crisis
Euro zone leaders reached a deal in principle on Saturday on making the 440 billion euro ($611 billion) bailout fund more flexible, and also agreed other elements of a comprehensive package to resolve the debt crisis, two EU sources said.
"A deal has been reached to make the EFSF more flexible," one diplomatic source said, referring to the European Financial Stability Facility, set up last year and used to bail out Ireland. Another confirmed that a deal had been struck.
"There is also a deal on other parts of the comprehensive package," said the first source, although he said he couldn't provide details as elements were still being finalized.
He said "technical experts" were drafting a statement for the 17 euro zone leaders and they were expected to sign off on it shortly.
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11 March 2011
Euro leaders surprise with crisis deal
BRUSSELS - Eurozone leaders say they have agreed on the cornerstones of a comprehensive solution to the currency union's crippling debt crisis.
EU President Herman Van Rompuy says governments will boost the effective lending capacity of the region's bailout fund to €440 billion.
He says they will allow the fund to buy government bonds on the primary market as part of a national bailout program.
He says they will also lower the interest rates for Greece's bailout by 1 percentage point.
On top of that, Greece will also get seven years to repay its loans, up from 3 1/2 years.
