E.U. Summit: Up All Night, But Consensus Finally Reached

When it comes to confronting the crisis threatening the euro’s very existence, nothing ever seems to come easy for European Union leaders—even a mutually sought agreement. That was demonstrated Friday at the E.U. summit in Brussels, where it took all-night haggling to approve growth stimulus measures that Italy and Spain had blocked until they obtained a softening of rules on bailouts that they’re likely to eventually seek. Only in the madness of the euro crisis can taking yourself hostage become an effective bargaining tool.

Yet, despite what were described as tense and grinding negotiations, decisions announced early Friday morning appear to represent important steps towards the survival of the embattled euro zone—and in both the short- and long-term context of the crisis. “(We took) a very ambitious decision that shows once again the commitment of the member states,” European Commission President Jose Manuel Barroso told reporters. “The irreversibility of the euro… will be recognized by all.”


At least once they wake up in the afternoon. Before the sleep-deprived leaders of the 17-member euro group broke their huddle at around 5 a.m. Friday, they adopted three significant concrete measures to confront the major factors in the crisis. The first involves allowing E.U. bailout funds to be paid directly to swamped euro-zone banks, rather than funneled through national governments. The old structure—designed to hold governments accountable for E.U. taxpayer rescue money—had the consequence of increasing the already crushing debt loads recipients were struggling to simultaneously finance and reduce. The change had been a demand Spanish Prime Minister Mariano Rajoy called vital in light of Spain’s pending $125 billion bank bailout request.

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