Banks Boost As Direct EU Loans Agreed

Banks Boost As Direct EU Loans Agreed.

Today the European Union leaders have finally decided to use the eurozone's planned bailout fund to directly support some countries struggling banks.  After 13 hours they also decided set up a joint banking supervisory body for the eurozone.  

The Spanish and Italian delegates put pressure on the German delegate to allow the bailout fund to buy government debt.

This plan will be implemented by the 9th July, however there are worries that it might take until the end of 2012 before the money becomes available to the banks.  Whether this bailout plan from the European Union will work or not is yet to be seen.  But certainly the markets welcomed the banks boost.