EU agrees deal to rescue Greece
European leaders reached an agreement to deal with Greece’s debt crisis and said they will hold the country to strict budget rules.
“There is an accord,” European Commission President Jose Barroso told reporters after the leaders of Greece, France and Germany met in Brussels.
German Chancellor Angela Merkel said: “Greece won’t be left alone but there are rules and these rules must be adhered to. On this basis we will agree on a statement.”
No details were released as the leaders hustled into a summit of the entire 27-nation EU. Plans by Greek Prime Minister George Papandreou to cut the EU’s highest budget deficit have triggered street protests.
The euro erased declines and Greek bonds rose after Barroso announced the agreement.
The euro, which fell as low as $1.3714 today, traded at $1.3739 at 12:59pm in Brussels. The yield on the Greek two-year government bond dropped 54 basis points to 4.915pc.