The president of the European Council, Herman Van Rompuy, announced a new budgetary pact for the euro zone, saying all currency members and six others had agreed to it.
Among various measures, the start date for the permanent rescue fund the European Stability Mechanism is to be brought forward by a year.
“The euro area and other member states will aim to make available additional ressources of up to 200 billion euros to the IMF,” said Van Rompuy. “The EFSF (European Financial Stability Facility) leverage will be rapidly deployed and we also agreed on the acceleration of the entry into force of the ESM (European Stability Mechanism) rescue fund. It should enter into force in July 2012.”
Both funds will be managed by the European Central Bank, as proposed by its president. But a plan to give the permanent rescue fund access to unlimited finance from the ECB was abandoned because of German opposition.