Leaders pledge to ensure stability in euro zone by all means
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Leaders of the 16 euro-zone countries pledged on Friday to ensure stability in the region by all means amid mounting concerns that the Greek debt crisis will destabilize the currency.
At a midnight news conference following an emergency euro-zone summit on Friday, European Council President Herman Van Rompuy said leaders reaffirmed their commitment to ensure "the stability, unity and integrity" of the euro area in the exceptional crisis.
"All the institutions of the euro area (the European Council, the European Commission, the European Central Bank) as well as all euro area member states agreed to use the full range of means available to ensure the stability of the euro area," he said.
European Commission President Jose Manuel Barroso said that leaders of the euro area showed unity around the currency and would "defend the euro whatever it takes."
In a joint statement, the leaders agreed to reinforce budgetary surveillance and strengthen economic coordination within the euro area in a bid to avoid Greek-style crises in the future.
"The Commission will propose a European stabilization mechanism to preserve the financial stability in Europe," the statement said, adding the proposal will be submitted on Sunday as EU financial ministers convene.
The statement also said the leaders decided to accelerate the work of a task force headed by Van Rompuy to strengthen the governance of the euro area, including broadening economic surveillance and policy coordination, reinforcing rules and procedures and creating a robust framework for crisis management.
Furthermore, the leaders reiterated the urgency of implementing tougher regulation of the financial markets and fighting speculation, which is believed to have worsened the Greek crisis.
"Increasing transparency and supervision in derivatives markets and dealing with the role of rating agencies are among the key priorities for the EU," the statement said.
The gathering of the euro-zone leaders came days after the eurozone countries pledged to provide debt-hit Greece with 80 billion euros (101.6 billion U.S. dollars) in loans over three years, while the International Monetary Fund will contribute another 30 billion (38.1 billion dollars).
The EU's executive European Commission has said Greece will get the first funds before May 19, when it is due to repay 8.5 billion euros (about 10.8 billion dollars) of maturing debt.
Earlier Friday, legislatures in major nations including Germany and France approved their shares in the rescue package hours before the summit.
To secure rescue loans, the Greek government needs to take austerity measures, including slashing pensions and civil servants' pay and further hiking consumer taxes. However, the move has triggered nationwide protests in Greece, leaving three people dead when a bank in Athens was firebombed.
On Wednesday, Greek lawmakers approved austerity measures worth about 30 billion euros (38.1 billion dollars) through 2012. Leaders of the euro area said on Friday that the measures taken by the Greek government were "ambitious and realistic."
However, the rescue package has failed to subside fears that the Greek debt crisis may spread to other eurozone countries, such as Spain and Portugal, which face similar public finance problems.
Investors have expressed deep concerns that the package would help Greece in the short run, but the country's long-term prospects are still unclear.
