The heads of the EU states have agreed on measures for recapitalization of banks at the urgent summit in Brussels on Wednesday night. The minimum limit for banks is 9%.
One of the main results of the summit is the reduction of Greek debt by 50%, French President Nicolas Sarkozy said after 10 hours of negotiations. The stabilization fund of the EU states will be increased to $1.4 trillion (1 trillion euros).
Polish Prime Minister Donald Tusk said that 27 EU leaders had discussed the euro's problems, its integration and repercussions. They talked about the financial recession and economic management. The euro needs to be a tool which doesn't impede the convergence of the European Union, Tusk says.
The summit's participants signed a declaration clarifying the status of various EU states. They also passed a declaration on recapitalization of banks. The minimum capital was raised to 9%, after market estimates on 30 September 2011. Capital was set at 106 billion euros and needs to be fulfilled by 30 June 2012. President of the European Commission Jose Manuel Barroso said that EU banks will no longer be able to pay wage bonuses and dividends to shareholders until recapitalization processes are concluded.
