(NEW YORK) -- After all-night talks, European leaders appear to have come up with a set of measures that may help ease the debt crisis plaguing the region.
Meeting for the 19th time since the crisis first erupted in 2009, leaders of the 17 nations agreed on Friday to loosen the rules of bailout funds that were supposed to help governments make their debt payments. Now, the money will be sent directly to struggling banks as well.
The leaders collectively decided to create a supervisory body that will oversee banks in the eurozone. The group will be up and running by the end of this year.
In a victory for Spain and Greece, the leaders also agreed to ease austerity requirements for countries that take bailouts. Germany made concessions in the short term, but leaders of the 27-nation European Union have agreed on a long-term plan for tighter fiscal rules.
More centralized supervision of national budgets is something Germany has been pushing for.
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