EU SUMMIT SEALS ONE TRILLION EURO DEAL AFTER MERKEL WARNS OF WAR IN EUROPE
By Macer Hall
Thursday October 27,2011
JUST hours after Germany issued a chilling warning that war could again engulf Europe, EU leaders made a desperate 1 trillion bid to save the euro.
Eurozone leaders sealed a three-part deal in the hope that the markets would be convinced there had been effective response to the crisis.
Officials in Brussels said an accord had been reached with banks on a 50% write-off of Greek debt and they also approved a complex mechanism to boost the eurozone’s main bailout fund to 1tr euro (£880bn).
The FTSE 100 index was 2 per cent higher this morning as investors welcomed the long-awaited action plan.
But only hours earlier, concerned about the consequences of a failure to deal with the crisis in the eurozone, German Chancellor Angela Merkel raised the spectre of military conflict.