EU leaders meeting in Brussels on Thursday for the European Council have agreed to set up a permanent mechanism to bail out any member state whose debt problems threaten the eurozone. They agreed that in 2013 the permanent mechanism would succeed the eurozone’s 750 billion euro temporary bail-out fund.

The agreement says “member states whose currency is the euro may establish a stability mechanism, to be activated if indispensable to safeguard the stability of the euro as a whole”.

Speaking to journalists in Brussels, Prime Minister Lawrence Gonzi said that this deal wiill help bring stability to Europe which will help create opportunities for Maltese business.

According to diplomats in Brussels, the agreed wording would be inserted into the Lisbon Treaty, a change that can be approved through a simplified procedure.

The leaders summit, scheduled to end on Friday, is also expected to approve Montenegro’s status as a candidate for EU membership.

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