21/07/2011 22:39 BST | Updated 20/09/2011 10:12 BST

Eurozone Leaders Plan Finalised At Brussels Summit

For the past few months, EU leaders have worried about the contagion of Greece's sovereign debt problem and how to prop up the euro.

But now, markets can breathe a sigh of relief after eurozone leaders hatched a deal to save the single currency at an emergency summit meeting in Brussels Thursday, reports the BBC.

The solution? Fix the eurozone bailout fund by expanding its role and powers by giving it more freedom and involve private lenders.

This would allow for longer loans at lower interest rates to struggling southern European countries.

The second move agreed by EU leaders was to restructure Greece's debt. But the chance of Greece defaulting, at least selectively, could still be a possibility, reports the Guardian.

French President Nicolas Sarkozy told the BBC they will provide 135bn euros (£120.5bn) over 30 years to Greece.

Greece received its first financial bailout package in May 2010, but analysts over the past few weeks have noted that the debt crisis has undermined confidence in global financial markets and that Greece's problems could hurt the Euro overall.

The New York Times emphasised the importance of Thursday's agreement, especially after EU leaders warned of contagion spreading to Italy, Spain and the global financial system.