The deal worked out by European leaders to solve the region’s massive debt crisis in a marathon sitting in Brussels is ‘a very large step’ in each subject, prime minister Mark Rutte told a news conference.

‘We have taken the right decisions,’ Rutte said, referring in particular to agreements made on tougher budget discipline.
And the prime minister said he is pleased with a passage in the text which says member states have agreed to follow the recommendations of the European Commission in order to ensure financial stability and economic growth. The Netherlands is keen to see the appointment of a commissioner with special responsibility for monetary union rules.
The strengthening of the emergency fund for weaker countries is also to be welcomed, Rutte said. ‘It has the power of a bazooka,’ he said.
Main points
The main points of the agreement, which is aimed at stopping the crisis spreading to countries such as Italy, include:
An increase in the eurozone’s bailout fund from €440bn to €1,000bn, through a combination of guarantees and the bond becoming a ‘bond insurer’, and IMF involvement.
Private banks holding Greek debt have accepted a loss of 50%.
Banks must also raise more capital to protect them against losses resulting from any future government defaults.
For more on the meeting and its outcome, check our international news pages.