The EU Summit announced an historic deal in the early hours of this morning which saved the Eurozone from collapse in the midst the Greece debt crisis.
London's FTSE 100 Index responded positively to the news, surging 2.3 per cent in early trading to 5,680.
Europe's leaders successfully negotiated on the three-pronged plan which, for the time being, will appease the financial markets.
"We have reached an agreement which I believe lets us give a credible and ambitious and overall response to the Greek crisis," Sarkozy said early on Thursday morning. "Because of the complexity of the issues at stake it took us a full night. But the results will be a source of huge relief worldwide."
The Key Decisions:
Greece's debt will be cut with banks taking a 50 per cent loss on Greek debt
Increase the mandatory capital buffer for European banks, to safeguard themselves against high risk investments
Increase the European Financial Stability Facility (EFSF), dubbed as the "firewall" designed to protect other EU states from contagion, to €1 trillion.
Need for detail
In a warning from the Chancellor of the Exchequer, George Osborne, said that "We now need the detail" [of how the numbers are put together]. He said: "Very good progress has been made, but we mustn't lose momentum on what has been achieved similar to the July package where it took months to put everything into action."
It is still yet unclear as to where the financing for the firewall fund will come from and if China will play a big part in investing into Europe. Prior to the summit, there were doubts that any kind of agreement could be made on such short notice, with the markets braced on what might have been their most turbulent day since the 2008 banking crisis.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Eurozone Crisis: FTSE surges after EU summit breakthrough
Published 10/27/2011, 09:14 AM
Updated 05/14/2017, 06:45 AM
Eurozone Crisis: FTSE surges after EU summit breakthrough
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.