- CNTV English - CCTV News

EU leaders sign growth and jobs pact

06-30-2012 08:09 BJT

Watch Video

Play Video

After 18 disappointing summits since the start of the debt crisis, Europe's leaders appeared on Friday to have finally come up with quick fixes and long-term plans that show they are serious about restoring confidence in their currency union. The leaders have signed a growth and jobs pact that aims to pump 120 billion euros into the region's stalled economy. They have also produced measures to relieve short-term financial pressures on vulnerable members and lay the framework for significant budgetary and banking integration.

At their summit in Brussels, EU leaders signed the growth and jobs pact in a bid to stimulate growth, investment and employment as well as make Europe more competitive.

Bulgaria's Prime Minister Boiko Borisov shakes hands with European Council
President Herman Van Rompuy (R) during a European Union leaders summit in
Brussels June 29, 2012.

The French-backed pact aims to free up money to invest in infrastructure and jobs at a time when one in 10 eurozone workers are unemployed and the economy is on the brink of recession.

Meanwhile, the leaders of the 17 eurozone countries have reached consensus on a number of issues.

They include:

-Pumping money from two European bailout funds directly into troubled European banks later this year, rather than making loans to governments to bail out the banks. The move rescues banks without putting strapped countries deeper in debt.

-Using bailout money "in a flexible and efficient manner to stabilize" European government bond markets.

-Allowing well-behaving countries tap European rescue funds directly without submitting to stringent bailout programs.

-Tying their budgets, currency and governments ever tighter in a vast new economic union down the line.

Leaders have agreed to create a single supervisory body for its banks by the end of the year. This is seen as a first step towards a European banking union.

Herman Van Rompuy, European Council President, said, "We agreed on something new which is a breakthrough that the banks can be recapitalised directly in certain circumstances and the biggest of the most important condition is that we have to put in place a single supervisory mechanism and second decision is that we are opening the possibilities to countries who are well behaving, that we are opening the possibilities to make use of financial stability instruments ESFS, ESM in order to reassure markets."

European Council President Herman Van Rompuy addresses a news conference
during a European Union leaders summit in Brussels June 28, 2012.

European Commission President Jose Manuel Barroso calls the decisions 'ambitious.'

Jose Manuel Barroso, European Commission President, said, "Direct recapitalization of banks will be possible under very strict conditions. And also in the other process these conditions have to be applied. So I think it is very ambitious decision that shows once again, the commitment of the member states namely those in euro area to the irreversibility of the euro and I think this will be recognized by all."

European and other stock markets have surged in response to the results. Yields on Spanish and Italian 10-year government bonds also dropped significantly on Friday. Eurozone leaders have held numerous summits over the past two and a half years since the crisis broke out, but thus far had failed to prevent it from continuing to spread through the single-currency area.


Editor:Bai Yang |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program