Asian stock markets surged after European leaders agreed to the recapitalization plan and a tighter union.
(The Canadian Press) European leaders agreed early Friday to funnel money directly to struggling banks, and in the longer term to form a tighter union.
The European Union summit in Brussels saw Germany take a gentler approach on forcing tough reforms in exchange for rescue money.
That was a victory for Italy and Spain, who have argued they have done a lot to clean up their economies, yet are facing rising borrowing costs.
Asian stock markets surged after European leaders agreed to the recapitalization plan and a tighter union.
Under the current rules rates would have been unsustainable in the long term. Lending the money directly to the banks would avoid putting that debt on the government's books.
In addition, the leaders agreed that EU countries that were following budget rules could apply for bailouts that would not come with the stringent conditions that have accompanied previous EU bailouts.
Analysts said the proposals at the summit in Brussels represented credible steps forward in the region's efforts to contain a debt and financial crisis and to help struggling countries like Greece and Spain, whose economies are hobbled by recession and severe borrowing problems.
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