Spain and Italy get EU deal on banking bailouts

29/06/12 13:57 CET

Europe

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Italy and Spain meet in Warsaw in the final of the euro 2012 on Sunday. And both countries will be pleased with their performance in the political arena too as the crucial EU summit goes into a final day.

The deal to allow bailout funds to go directly to banks without further austerity measures being applied was backed by French President François Hollande.

“We have moved together and the best way to get others to move is to move yourself. Of the three goals I set myself we have growth, short-term measures and an overall vision. We have made important steps forward,” he said.

German Chancellor Angela Merkel agreed to ease the pressure on Spain and Italy in turn for the establishment of an EU supervisory body to oversee European banks.

Speaking ahead of the final day of talks at the EU summit the chancellor said: “We have stuck with our existing pattern of giving, taking in return, setting conditions and maintaining control. That is why I think we have done something important, but we stayed faithful to our philosophy, you don’t get something for nothing.”

Next on the agenda for EU leaders is discussions on the foundations for closer fiscal and banking union with detailed proposals due in October.