Euro zone gets international rescue fund

17/12/10 02:44 CET

world news

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EU has agreed to set up a permanent rescue fund to help euro zone members struggling with sovereign debts.

EU treaties will now be revised to allow the fund to be set up in 2013.

However, any euro zone country that needs help will be made to act on cutting its deficit.

Germany insists countries should not be able to access bailout money too easily.

The fund replaces the temporary mechanism set up in May.

Greece and Ireland have already received some of that money, while investors expect Portugal and Italy to seek help next.

euronews’ correspondent in Brussels says:

“We will do everything to stabilise the euro.
Behind the message lies the future of the single currency. It opens many possibilities. One is intervention when necessary, by increasing resources to those in difficulty.
The second, though not discussed in public, is possibility of issuing euro bonds.”

More about: Brussels, EU Council, Eurozone

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