EU agrees €1.7bn deal but split on climate change

EU leaders agreed a €1.7 trillion rescue package for Europe’s banking and financial sector at their summit last night, but were split over the cost of climate change proposals.

All 27 countries adopted the package accepted by the eurozone nations, including Ireland, in Paris last weekend that allows countries to shore up banks by buying shares or their toxic assets and guaranteeing deposits and interbank loans.

They agreed to move on to the next stage — setting up a system of regulation and supervision of financial markets to ensure against the kind of reckless lending and borrowing that led to the current crisis.