Eurozone leaders agree on injecting capital directly into banks

Zeebiz Bureau

Brussels: Taking new radical measures to tackle the EU debt crisis, eurozone leaders on Friday agreed on letting their rescue fund inject aid directly into stricken banks from next year, as per a news wire.

The EU leaders have also pledged to create a single banking supervisor for eurozone banks based around the European Central Bank, a step that is widely expected to prop up struggling member Spain.

"It is a first step to break the vicious circle between banks and sovereigns," the news wire quoted European Council President Herman Van Rompuy.

ECB President Mario Draghi endorsed the "tangible results", which sent the euro nearly 2 percent higher and sharply cut Spanish and Italian bond yields.


With Agency Input