Spain wins restructuring of bank deal

Report of decisions taken at the European Council, Brussels, 28-29 June 2012.

Eurozone leaders agreed to radically restructure Spain’s €100bn bank recapitalisation plan, allowing EU bailout funds to eventually be injected directly into teetering Spanish financial institutions, meaning Madrid can sweep the burden of the bailouts off its sovereign books.

The summit agreement also contained some concessions for Italy and Ireland.

In addition, a new banking supervisory body will be created under the auspices of the European Central Bank.

[Note this is an interim report; the summit meeting continued on 29 June 2012]

Council of the European Union: Euro Area Summit Statement, 29 June 2012 http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/131359.pdf

ESO: Background information: European Council, Brussels, 28-29 June 2012: Preview: EU could rewrite eurozone budgets http://www.europeansources.info/record/european-council-brussels-28-29-june-2012-preview-eu-could-rewrite-eurozone-budgets/

ESO: Background information: Spain asks for aid to recapitalise banks http://www.europeansources.info/record/spain-asks-for-aid-to-recapitalise-banks/

EurActiv, 29.6.12: Merkel bows to Italy, Spain on bonds and bank supervision http://www.euractiv.com/euro-finance/merkel-bows-italy-spain-bond-buy-news-513631

EurActiv, 29.6.12: EU countries want their say in shaping Europe’s future http://www.euractiv.com/future-eu/eu-countries-want-shaping-europe-news-513637

EUObserver, 29.6.12: Italy and Spain get 'breakthrough' deal on bailout funds http://euobserver.com/19/116806

BBC News, 29.6.12: Eurozone agrees on bank recapitalisation http://www.bbc.co.uk/news/world-europe-18620965

Deutsche Welle, 29.6.12: Merkel isolated at EU summit http://www.dw.de/dw/article/0,,16059797,00.html

France24, 29.6.12: Deal on funding banks a 'breakthrough', EU chief says http://www.france24.com/en/20120629-eu-leaders-multibillion-euro-stimulus-recapitalising-banks-rompuy-summit-eurozone-brussels

EUObserver, 29.6.12: Merkel under pressure over summit deal http://euobserver.com/19/116816

Spiegel Online International, 29.6.12: How Italy and Spain Defeated Merkel at EU Summit http://www.spiegel.de/international/europe/merkel-makes-concessions-at-eu-summit-a-841663.html

European Commission: RAPID: SPEECH/12/508: Statement by President Barroso at the intermediary press conference at the European Council http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/12/508&format=PDF&aged=0&language=EN&guiLanguage=en

BBC News, 29.6.12: Merkel defends compromise deal on eurozone banks http://www.bbc.co.uk/news/world-europe-18646637

France inter, 29.6.12: A leap forward (via PressEurop) http://www.presseurop.eu/en/content/article/2266071-leap-forward

El Mundo / El País / Le Figaro / Tageszeitung / Corriere della Sera, 29.6.12: A battle has been won (via PressEurop) http://www.presseurop.eu/en/content/press-review/2267551-battle-has-been-won

PressEurop, 29.6.12: A bad night for Merkel http://www.presseurop.eu/en/content/editorial/2267441-bad-night-merkel

ESO: Background information: European Council, Brussels, 28-29 June 2012. Presidency Conclusions http://www.europeansources.info/record/european-council-brussels-28-29-june-2012-presidency-conclusions/

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