Deal helps rally euro but fears remain

THE European Union’s €750 billion support package announced yesterday has prompted strong growth in the value of the euro and in European shares but also prompted warnings that the market’s fears were merely allayed rather than dead.

The second stage of the EU’s strategy to protect the single currency will be unveiled tomorrow when the finance ministers return to Brussels for their second meeting this week.

The union’s economics commissioner, Olli Rehn, following the 11-hour emergency meeting, warned the bloc “will defend the euro no matter what it takes”.