Europe Strikes Fiscal Union Pact

Next step in solving debt crisis is left up to the European Central Bank.

European leaders’ blueprint for a closer fiscal union to save their single currency left the onus on central bankers to address investor concerns that Italy and Spain would succumb to the two-year-old financial crisis.

While European Central Bank President Mario Draghi hailed the accord struck at all-night talks in Brussels, investors urged him to expand his crisis-fighting arsenal to ensure debt-addled nations can pay their bills. Italian bonds fell today even as the ECB was said to be buying them in the market.

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