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EU leaders seal deal to end growing economic crisis

October 27, 2011 - Brussels

European leaders have reportedly sealed a three-part deal which they hope will convince markets they have an effective response to the growing economic crisis.

According to the Daily Star, officials in Brussels said an accord had been reached with banks on a 50 percent write-off of Greek debt, and they also approved a complex mechanism to boost the eurozone's main bailout fund to one trillion euro.

It means that, coupled with an earlier decision to recapitalise vulnerable banks, the summit has delivered on the package it promised.

The FTSE 100 Index was two percent higher on news of the agreement, while stocks in France, Germany and across Asia also opened on the up.

After the summit, EU president Herman Van Rompuy said that the deal would reduce Greece's debt to 120 percent of its GDP in 2020.

He added that the eurozone and International Monetary Fund (IMF) would give the country another 100 billion euro.


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