Mario Monti and Angela Merkel
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Eurozone crisis: 'Breakthrough' at summit

EU leaders have agreed to use the eurozone's planned bailout fund to directly support struggling banks, without adding to government debt.

After hours of talks, they also agreed to set up a joint banking supervisory body for the eurozone.

Spain and Italy put pressure on Germany to allow the bailout fund to buy government debt in the markets - a measure to contain their borrowing costs.

David Cameron welcomed the agreement and said he had secured "explicit commitments" to protect the EU single market.

Gavin Hewitt reports.

  • 29 Jun 2012
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