After a draft agreement was forged, with France’s Nicolas Sarkozy and Germany’s Angela Merkel leading the way, the Euro value surged as it gained a penny and a half in value bringing it up to $1.433. Stocks also rose on the news of Greece,Portugal and Ireland more time to pay off their debts.
Nations such as Spain and Italy, who are large but struggling European economies were also offered precautionary lines of credit as to cease their further slide and hopefully prevent the need for other bailouts, as Greece recently was bailed out.
In addition to these provisions, it was determined that Greece should participate in a default of a selective variety, where it picks who it defaults to. Suggested was that private investors take a hit, as they should share some of the costs associated with saving Greece.
Along with President Sarkozy and Merkel was European Central Bank president Jean-Claude Trichet, who had been a critic of Merkel’s proposals to end the Euro Crisis. After hours of working out a deal on Wednesday and Thursday, it is expected that some sort of vote should occur Friday to prevent the Euro from collapsing, continue supporting Greece, preventing a bank tax, and propping up other struggling European economies.