European leaders agree to fund floundering economies

BRUSSELS: The European leaders have agreed to promote the financing the crisis-hit economies. In the same move the leaders have settled a deal on new growth measures, as per the EU President, Herman Van Rompuy.

On the first day of a two-day European Union summit, he said, “What we already agreed is to boost the financing of the economy by around v120 billion for immediate growth measures.”

The plan proposed by the Euro Zone's leading four economies Germany, France, Italy and Spain anticipates a package of measures to enhance output and create jobs.

The deal would send unexpended EU funds to the most needy countries and prop up the coffers of the European Investment Bank by encouraging its capital base by €10 billion.

According to EIB, the capital injection would allow it to raise funds in the markets to invest €60 billion in innovation, small- and medium-sized companies and infrastructure projects.