June 29th, 2012
05:01 AM ET

European leaders reach key deal on banks

European leaders reached a "breakthrough" deal early Friday to ease the recapitalization of struggling banks that should help draw the eurozone back from the brink of a gathering crisis.

Under the deal, European leaders agreed to create a single supervisory body to oversee the eurozone's banks which could use the single currency area's rescue funds, the European Financial Stability Facility or European Stability Mechanism, to aid banks directly without adding to governments' debt.

European Union leaders are hoping for implementation of the agreement by July 9, an EU statement said.

The deal means Spain's formal request this week for eurozone bailout funds to recapitalize its troubled banking sector will not add to its sovereign debt. Madrid had feared the increased debt load would send its borrowing costs even higher.

Ireland, which hopes to rework the terms of its bailout deal, and Italy, which like Spain is battling with spiraling government borrowing costs, could also benefit from the new deal.


Filed under: Economy • World
soundoff (14 Responses)
  1. chilipepper

    Comm'on people Zimmerman is half Hispanic. You liberals are going after this guy like he a pure white. He looks Hispanic too. If Zimmerman's name was Chavez most of you would be more forgiving and actually look at the edvidence and the law of Florida. But people know White people are fair game and say anything they want about them so they can get all their hate out. Can't do it with any other race. So when even if someone is half white unless he half white and black people are out for blood for the so called White Hispanic that liberals have labeled Zimmerman

    June 29, 2012 at 6:23 am | Report abuse |
    • phunk

      Ummmmmm, wrong article pal. Read much? Or are you just one of those paid posters the RNC has running around and you forgot before you pasted your pretyped comment to actually check what the article was about?

      June 29, 2012 at 11:23 am | Report abuse |
  2. state of manufacturing

    Funny how, only a few decades after WWII the Germans have managed to put Europe under their thumb.

    June 29, 2012 at 8:46 am | Report abuse |
  3. chrissy

    @ chillipepper, makes no difference really if hes a white child killer or a hispanic child killer, hes still a CHILD KILLER!

    June 29, 2012 at 10:20 am | Report abuse |
  4. phunk

    So if it doesn't add to sovereign debt, whose debt does it add to?

    June 29, 2012 at 11:27 am | Report abuse |
    • Frank the Dog

      Don't care as long as it doesn't add to ours!

      June 29, 2012 at 12:08 pm | Report abuse |
  5. Rascal Rabble

    yep whose backing the euro...was supposed to be a contender with us dollar currency?

    June 29, 2012 at 11:58 am | Report abuse |
  6. saywhat

    @ Hide Behind
    Yes. Also the sentiment on the ground in Euro countries has been far from contended and that is going to play out yet. Whether Spain and Italy get bailed out or not.
    The time that they left all to us for leading them is fast ending. NATO's future too is now rather unclear to some degree.

    June 29, 2012 at 12:25 pm | Report abuse |
    • Mary

      NATO has two more wars to get thru... Iran and Venezuela, so what would their role be? Give me possiblities saywhat.
      And a happy Friday to you 🙂

      June 29, 2012 at 12:33 pm | Report abuse |
  7. saywhat

    Good morning@ chrissy.
    Hope you are enjoying Friday.

    June 29, 2012 at 12:26 pm | Report abuse |
  8. saywhat

    Good morning@Mary and a happy Friday to you too.
    Once we are committed in Iran and inevitably in Pakistan it is going to be nightmarish for NATO. Reluctance on the part of Europe to get involved in this war will not prevent them from being a part. There is no way that we can rule out reaction from Russia and China.
    The possibilities are rather unknowable. It most certainly will not be Iraq or Afghanistan, that is for sure.

    June 29, 2012 at 2:33 pm | Report abuse |
  9. Mary

    Yes, agreed. Afghanistan is too important to the pipe line and Pakistan is pretty much ruined, not much more we can do that we haven't already done there.

    June 29, 2012 at 3:06 pm | Report abuse |

    Where and upon what basis are the statements that Russia and China will become involved in our and NATOS actions as adversaries?
    Neither nation has made any moves militarily outside their borders; China is today the most neutral nation in world we can only see a most neutral nation on earth, and Russia is making billions while aiding every move US and its NATO allies do in Afghanistan.
    Wherever Russia has surrendered teritory US/NATO. and in Central Asia this includes Israel, Has came in militarily and Not a peep out of them.
    Russia is easily dealt with as they have a nation ruled by corruption, where each of what used to be public ofices now are run as money making enterprises.
    A military that was so antiquated that when problems aroze in Georgia less than half their military forces could, and some never made it there, barely get there and then list more equipment and men than in all of Afghan period.
    Unless the US and NATO. directly attack either China or Russian soils neither country will become politicly or militarily responsive.
    That eventuality will come about but not from causes of their own making.

    June 29, 2012 at 3:36 pm | Report abuse |
  11. Mary

    @saywhat,I made a miserable mess of my last reply to you and to post from my phone is a pain in the rear end! ill reply later when I get home>

    June 29, 2012 at 5:27 pm | Report abuse |