A Eurozone debt deal has been struck this morning as European leaders in Brussels cemented a “three pronged agreement” in order to resolve the current financial crisis.

The deal sees the bail-out fund, the European Financial Stability Facility (EFSF), expanded from €440bn to €1trn, investors taking a 50% loss on Greek debt and emphasised the need for banks to raise more capital.

With fears that the crisis could eventually worsen in Italy whose debt crisis currently stands at €1.9trn and also in Spain, the agreement has been highlighted as a necessary solution to stemming the severity of the crisis even though European leaders have accentuated that many questions still remain unanswered.

In addition to the main points, European leaders also called for a strengthening of economic and fiscal coordination and surveillance to help stop potential future debt crises.

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