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EU leaders agree to raise crisis fund to help troubled members |
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20:54, November 08, 2008 |
European Union (EU) leaders agreed on Friday to double the bloc's crisis fund in emergency aid to member states severely hit by the financial crisis.
"We have agreed on the need to raise to 25 billion euros (32 billion U.S. dollars) from 12 billion euros (15 billion U.S. dollars) the ceiling on loans which the EU can provide for this purpose," EU leaders said after they wrapped up a one-day informal summit in Brussels on Friday.
They said the provision of support for member states experiencing financial difficulties was a show of EU unity.
Hungary became the first EU country that was forced to seek EU assistance from the fund due to the current financial crisis.
Earlier this week, EU governments approved a plan to provide 6.5 billion euros (8.3 billion U.S. dollars) in emergency financial aid to the country after its financial markets came under severe stress as the global financial crisis deepened and broadened.
Under current rules, the EU can only provide as much as 12 billion euros in the form of so-called medium-term financial assistance facility to help member states outside the euro zone stabilize their economies.
The European Commission proposed last week to raise the ceiling of the EU crisis fund to 25 billion euros.
The EU leaders' agreement paved way for a formal decision by their finance ministers at a meeting next month.
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