Financial markets rallied Friday after the EU summit produced an "intergovernment" agreement designed to impose tighter budget rules on member states, as well as 200 billion euros (about $270 billion) for the IMF's bailout fund.
All 17 nations in the eurozone signed the agreement, which calls for "automatic consequences" against nations that breach deficit targets, and 23 of 27 EU members signed on as well.
"It is a very good outcome for euro area members and it's going to be the basis for a good fiscal compact and more disciplined economic policy in euro area countries," European Central Bank president Mario Draghi said of the agreement.
But just as traders found the ECB wanting on Thursday, enthusiasm for the EU package Friday was tempered by Britain's refusal to sign the agreement, which itself is not the "grand bargain" treaty change many had hoped for at the beginning of the week. In addition, Germany Angela Merkel rejected plansRead More »from Europe Is “Like the Drowning Man,” Dow Says: Policymakers Fix Engine on Car with Faulty Brakes