European Council President Herman Van Rompuy speaks during a media conference at an EU Summit in Brussels on Thursday, June 28, 2012. (AP)
European leaders have agreed to use the continent's permanent bailout
fund to recapitalize struggling banks, and agreed to the idea of a tighter
union in the long term.
The bank decision at overnight meetings in Brussels on Friday was aimed at
helping Spain, which sought a €100 billion rescue to help its troubled banks
and is facing rising borrowing costs.
EU President Herman Van Rompuy called it a "breakthrough that banks can be
He said leaders of the 17-nation eurozone also agreed to a joint banking
He said the leaders of the full 27-member European Union agreed to a general
long-term plan for a tighter budgetary and political union.