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EU finance chiefs hold further crunch talks

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EU finance chiefs hold further crunch talks

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EU finance ministers met in Brussels on Tuesday for further talks only hours after agreeing a blueprint to save Spain.

That package will see an immediate 30 billion euros go to bail out ailing Spanish banks. Eurozone heads also gave Madrid an extra year to bring its deficits within the crucial three percent target.

Spain’s economy minister Luis de Guindos said: “We’ve come to an broad agreement over the memorandum we will sign on 20 July. It’s been established this loan will go into a fund (FROB) to help restructure the banks via the Spanish treasury. These are extremely good conditions, with a very long maturity date, a very long grace period with very low interest rates.’‘

In addition to discussing Spain’s and Europe’s troubled banks, the leaders are also expected to look at ways of helping Cyprus, the eurozone’s fifth country to request emergency help.

Austria’s finance minister Maria Fekter said: “In the case of Cyprus it is in a similar situation to Greece. We need further details concerning recapitalisation which we should get very soon.’‘

The latest deal should eventually pave the way for Europe’s stricken banks to be helped directly via the bloc’s emergency firewall, the ESM, once a permanent European banking supervisor has been appointed.