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Europe agrees to bank bailout, stimulus
The euro symbol is reflected in a puddle in front of the European Central Bank in Frankfurt, Germany: Eurozone leaders meet in Brussels Thursday to decide the monetary system's fate.
The euro symbol is reflected in a puddle in front of the European Central Bank in Frankfurt, Germany: Eurozone leaders meet in Brussels Thursday to decide the monetary system's fate.
Uwe Zucchi/dpa/Corbis
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uropean leaders agreed early Friday to use a bailout fund to pump money directly into struggling banks, paving the way for a 130 billion euro ($160 billion) package to stimulate economic growth in the 17-member eurozone. Spain and Italy had blocked agreement on the growth fund until fellow eurozone leaders approved some form of aid to lower dangerously high borrowing costs in the two countries. Also at the summit, leaders of the 27 European Union member states agreed on "the four building blocks" to create a "genuine economic and monetary union," according to European Council President Herman Van Rompuy. That might include jointly issued eurobonds, something Germany has resisted. European markets and the euro responded positively to the agreements.

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