Eurozone's four biggest economies have agreed to boost economic growth up to one percent of the region's national output, in their latest effort to ensure the currency bloc's long-term sustainability.
The leaders of Germany, France, Spain and Italy vowed to set aside 130 billion euros for measures to support growth. However, they gave no indication of taking up common liabilities such as eurobonds.
Italian Prime Minister Mario Monti, who hosted the mini-summit between him, German Chancellor Angela Merkel, Spanish Prime Minister Mariano Rajoy, French President Francois Hollande in Rome on Friday, suggested that Europe needs a better plan to restore market confidence.
The growth package has no new plans but the leaders said they expect more solid measures to be up for discussion at the EU summit next week.
The four leaders on Friday agreed to boost the capital of the European Investment Bank by 10 billion euros. Launching "project bonds" to co-finance public investment projects and redirecting unspent cash to European Commission's regional funds were also part of the package.
Meanwhile, on Sunday the German government won the approval of the Bundesrat, the upper house of parliament, for Germany's ratification of the EU fiscal compact and the European Stability Mechanism, Europe's permanent bailout fund.
by RTT Staff Writer
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