European leaders bolstered their crisis-fighting toolbox with a plan that may generate only limited relief for stressed sovereigns unless it can be fleshed out within weeks.
"It remains a deal long on intentions and short on details," said Jens Larsen, chief European economist at RBC Capital Markets in London. "Until we know how the mechanisms will work, it will be hard to judge whether this will be sufficient to entice investors to provide support to European governments."
Europe's currency, stocks and bonds rose after 10 hours of talks ended in Brussels with governments boosting the heft of their rescue fund to 1 trillion euros ($1.4 trillion) and persuading bondholders to take 50 percent losses on Greek debt. Measures also included a recapitalization of European banks and a potentially bigger role for the International Monetary Fund in strengthening the bailout fund.
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