German Chancellor Angela Merkel said on Thursday last night's emergency summit of European Union leaders in Brussels had important results.
"We on the one hand discussed the necessary future steps and on the other agreed long-term reforms designed to improve European institutions and cooperation within the eurozone," Merkel said.
The EU leaders resolved to increase the European Financial Stability Facility (EFSF) to 1 trillion euros ($1.4 trillion) from the current 449 billion euros.
A deal was also reached to write off 50% of Greece's debt, to make the debt burden sustainable. The country will also be able to receive up to 100 billion euro ($140 billion) of financial support from the EU and the International Monetary Fund (IMF).
"We have agreed a joint package of five elements: firstly, it includes efforts by EU members; secondly, long-term decisions for Greece; thirdly, optimization of the EFSF; fourthly, recapitalization of banks; and fifthly - boosting stabilization framework in the eurozone," Merkel said.
