NEWS

EU leaders welcome new pact on Greece

European Central Bank chief Jean-Claude Trichet welcomed a new Greek bailout agreed by eurozone leaders on Thursday as a ?crucial? move for stabilizing the debt-ridden country.

?I welcome the reaffirmed commitment of euro-area member states to ensure financial stability in the euro area,? Trichet told reporters. The new deal is ?crucial to…stabilize public finances, to ensure public debt sustainability,? he added.

European Commission President Herman Van Rompuy described the new pact as a response to ?a threat that had to be contained.? ?We reached agreement on a new assistance program to fully cover the financing gap and to be financed by both the EU and the IMF,? Rompuy said.

French President Nicolas Sarkozy said the deal represented a springboard for further changes in the euro area.