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EU Strikes Deal to Ease Spain, Italy Financial Strains

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  • Description

    FBN's Ashley Webster reports on the EU Summit in Belgium.

  • Duration 2:22
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More time.

We're gonna turn our attention back to Europe because overseas progress is being made at least that's what they're saying.

At the EU summit in Belgium European leaders have the framework of the deal.

To ease the financial strain on the Euro -- this -- markets worldwide trading higher.

FBN's Ashley Webster joins us live from Brussels with more on the EU's latest plan to save itself so after the -- -- -- Can they declare victory are they out of the woods.

No I don't think you can say that out.

And but I think it's somewhat.

A positive step but at least the EU leaders came up with some kind of planned some short term fix.

To try and bring down the borrowing costs of both Italy and Spain just when it appeared.

That this twenty of summit since 2010 was teetering on the edge of yet another Thalia.

Bottom line German Chancellor Angela Merkel was put into a corner by Italy and Spain and really led the buying out a charge by French president -- Francois -- on saying that Germany has to back off of its strong austerity measure approach.

And give some relief.

And so what that means is that part of this agreement is that these Spanish and Italian banks can get direct access to recapitalize their banks books.

Through the EFSF that's the temporary bailout fund and the ESM the European stability mechanism that will be put in place.

Next month this is huge because it means that it will not -- bank -- shall not be put on the government books.

And already was seeing the impact of those.

Yields coming down Spanish yields on ten year bonds down to six point 4%.

-- -- yields also moving low -- just what the EU wanted to at least.

At least a fix this problem in the -- -- doesn't fix a bigger problems how you gonna get growth in the EU.

And how we gonna bring down the -- debt levels we should also point out to Germany did get part of what it wanted.

And that is a supervisory panel to oversee all Euro zone banks and that is supposed to be in place.

By the end of the year but certainly Angela Merkel going back to Berlin a little beaten up but in the -- along -- I think -- Italy and Spain certainly coming out.

-- with what they wanted -- back to you as they -- to live in -- -- -- just reminded everybody -- is live all day throughout the day here at Fox Business Network -- -- on what's happening.

At the summit in Brussels and what it means for -- invest.

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