EU deal reached on assisting debt-laden Greece

EU President Herman Van Rompuy today said European leaders have reached a deal on helping Greece with a debt crisis that threatens to spread to other eurozone nations.

Mr Van Rompuy said “we have an agreement”, after meeting in Brussels with Greek prime minister George Papandreou, French President Nicolas Sarkozy and German Chancellor Angela Merkel.

He gave no further details, saying they would be released after the leaders of all 27 EU states finish their talks in Brussels today.

Nervous markets worldwide are watching for a concrete assurance that the 27-nation European Union can help Greece stave off a default – and keep the crisis from spreading to other vulnerable countries, threatening Europe’s hesitant economic recovery.

Mr van Rompuy went on to say countries which use the euro are ready to take “coordinated measures” if necessary to help Greece.

He gave no firm offer of financial aid to the country, and insisted that Greece had not asked for any.

He said: “Euro-area members will take determined and co-ordinated action if needed to safeguard stability in the eurozone as a whole.”