Europe summit surprises with bold moves

Don Melvin - The Associated Press

AP Photo/Michel Euler
German Chancellor Angela Merkel, center, speaks with European Central Bank President Mario Draghi, left, and Italian Prime Minister Mario Monti during a round table meeting at an EU Summit in Brussels on Friday, June 29, 2012. European leaders have agreed to use the continent's permanent bailout fund to recapitalize struggling banks, and agreed to the idea of a tighter union in the long term.

BRUSSELS (AP) — After 18 disappointing summits since the start of the debt crisis, Europe's leaders appeared Friday to have finally come up with a set of short-term measures and long-term plans that show they are serious about restoring confidence in their currency union.

Leaders of the 17 countries that use the euro agreed they will let funds intended to bail out indebted governments funnel money directly to struggling banks as well. They said the move will "break the vicious circle" of bank bailouts piling debt onto already stressed governments.

European Council President Herman Van Rompuy called it a "breakthrough." Global stock markets and the euro rallied hard.

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June 29, 2012

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Tuesday, May 21, 2013 Last Update: 6:46 PM ET