EU Reaches Agreement Overcome Debt Crisis

NEW YORK - After a long process, European leaders could finally agree to take strategic steps in order to save this blue continent from the financial crisis that originated from the collapse of the Greek economy, followed by several other countries in Europe. In a meeting held today in Brussels Belgium, the country's top officials announced a joint decision to fight the crisis, including an agreement with investors in the private sector to manage 50 percent of Greece's debt in the form of bonds.

This approval came after marathon talks that began this morning, to complete the final stages of detailed comprehensive policy to address the issue of government debt and banking problems that threaten the stability of the euro common currency and of course the global economy. In conclusion, there are three steps that together EU leaders agreed to prioritized solutions, namely about the debt crisis in Greece, unstable banking sector, and about the bailouts.

In the new plan, the holders of Greek bonds from the private sector voluntarily agree to the management of 50 percent of the national debt, which means a total of 100 billion euros and will reduce the burden of national debt to 120 percent of economic output by 150 percent. Charles Dailara Director of the Institute of International Finance, which is one of the representatives of the private sector said they welcomed the leaders, because no yield support for the package of 30 billion euros of private involvement in the process of recovery of the Greek economy.

Adapaun about the bailout plan a stronger, European leaders agreed on two attempts to increase the firepower of the European Union bailout fund known as the European Financial Stability Facilities, which will bring four to five times the ability to effectively use bailout money for the creditor countries . Later these funds will be used to ensure the emergence of a new government-run bonds, in addition to making an investment instrument that will lure private players who have large amounts of fresh funds. EU leaders also agreed to increase the capital funding requirements of the existing banks to reduce purchases of government bonds heavily in the euro area.