Euro heads agree to closer long-term union in win for Spain, Italy


BRUSSELS (AP) ― European leaders meeting in Brussels agreed Thursday to devote $149 billion for “immediate growth measures” to try to dig the continent’s weakest economies out of crisis.

While some hailed the accord as a sign of progress for the troubled European Union and job creation, about half is money that had already been promised. And it is not seen as the powerful solution that markets are seeking to restore confidence in the eurozone and, by extension, the world economy. The EU leaders announced the pact partway through Day 1 of a much-awaited summit in Brussels. Sharp divisions remain over the issue of pooling government debt as a way to ease the continent’s financial crisis. Spain and Italy are especially determined to push other leaders in Brussels ― notably German Chancellor Angela Merkel ― to make some gesture to cool markets and bring their borrowing costs down.

Herman Van Rompuy, president of the European Council, says the 27 heads of state and government would continue their discussion of how to achieve financial stability into the evening.

“They underperformed my low expectations,” said Megan Greene, director of European economies at Roubini Global Economics.