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Eurozone leaders agree on injecting capital directly into banks

Eurozone leaders agree on injecting capital directly into banks Zeebiz.com

Brussels, June 29: Taking radically new measures to tackle the eurozone's debt crisis, eurozone leaders on Friday agreed on letting their rescue fund inject aid directly into stricken banks from next year, a news wire has reported.

The EU leaders have also pledged to create a single banking supervisor for eurozone banks based around the European Central Bank, a step that is widely expected to prop up struggling member Spain.

''It is a first step to break the vicious circle between banks and sovereigns,'' the news wire quoted European Council President Herman Van Rompuy as saying.

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