European leaders reach deal

Damion Mitchell, Editor – Radio & Online

BRUSSELS, Belgium:
European leaders have made a breakthrough in their all-night talks aimed at saving the euro.

Following the negotiations, the leaders have agreed to provide 800 billion euros to banks in the Eurozone in need of support instead to individual governments.

With that decision will come stricter monitoring on which German Chancellor Angela Merkel has been insisted.

The decision to provide money to banks in the Eurozone instead of to individual Governments means that countries like Spain and Italy which are now in a financial rut will not face increase debt.

Spain which had been struggling with an unsustainable seven per cent interest on bonds was among five European countries that had asked for a bailout.

Already the European markets have been positively reacting to the agreements reached last night.

Journalist Paul Ames agrees that there is now relief in Europe but he says there is still reason to be cautious.

According to Ames, Jamaica and the Caribbean can now rest easier as a possible fallout in the European economy appears to have been averted, but he says as experts review the agreements they will identify weaknesses which will

Yesterday the European Council president Herman Van Rompuy announced a 120 billion euro plan to stimulate growth.

As part of that plan, there will also be focus on youth employment.

The leaders will wrap up their talks today and no doubt over the next few weeks their focus will be on finalising the conditions for the new plan to which they have agreed.