Leaders in Brussels of the European Union have agreed upon a plan that will help prevent future catastrophes that could threaten the monetary union. The plan will allow banks to make emergency loans to aiding banks for bailouts. These bailouts in the past have lead to national bailouts which this plan will eliminate. This will cutoff the ongoing debt cycle of the banks and sovereigns. The new policy will go into effect on Jan.1, 2013.
The leaders also announced Greece's movement toward budget cuts and how willing the government and people were to continued fiscal reform. Greece is one of the 17 nations united under the single euro currency whose debts sparked a danger for the euro zone. Athen's must cut $17 billion from it's budget in order to receive it's bailout assistance of $41 billion.
http://www.cnn.com/2012/10/19/business/eu-summit-banks/index.html?hpt=wo_c2
The Euro zones account deficit has continued to increase and the burden has remained for the 17 nations that are a part of the single euro currency. Greece has been on the brink of fallout and drastic measures will need to take place in order for this plan to be successful. The "praise" from the leaders toward the Greek government and community should hold it's applause until the country has shown more progression toward it's heaping $17 billion budget cut. In return for the cut they will go further in debt $41 billion to try to crawl it's way back to a civil, balanced nation.
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