Showing posts with label ECONOMY. Show all posts
Showing posts with label ECONOMY. Show all posts

Saturday, June 30, 2012

EU Summit: How all-night Brussels showdown pulled Euro back from brink


     They were bleary-eyed in their crumpled suits early on Friday morning, but euro zone negotiators were smiling after a hard-fought night of talks that struck a surprisingly far-reaching deal to prop up the euro.

     An agreement to let the euro zone's rescue funds directly recapitalise banks - something Spain has long held out for - went substantially beyond what almost all diplomats and finance officials expected going into the two-day summit.

     It also crossed a red-line that Germany had set down, indicating that Chancellor Angela Merkel had to give ground after being backed into a corner - some said held hostage - by Italian Prime Minister Mario Monti and Spain's Mariano Rajoy.