Finance ministers from the 27 EU countries, meeting in Brussels, approved extending Spain's deadline for achieving a budget deficit of less than 3 percent of its annual economic output, until 2014, said Vassos Shiarly, Cyprus' finance minister and chair of the meeting.
Last month, the eurozone's finance ministers agreed to offer Spain up to €100 billion to prop up its stricken banking sector, which has been weakened by toxic loans and assets from a collapsed property market.
The finance ministers for the 17 countries that use the euro will return to Brussels on July 20 to finalize the agreement, having first obtained the approval of their governments or parliaments, eurozone chief Jean-Claude Juncker said.
Spain — the fourth-largest economy in the eurozone — has been struggling to keep a lid on its government deficit in the midst of a recession while trying to support its troubled banking industry.
The creation of the central bank supervision will allow the EU's firewall fund to recapitalize banks directly rather than lending the money to a country's government — something that increases the country's debt load.
Ministers added that the final decision on Greece's request to renegotiate the terms of the country's bailout agreements will depend on the conclusions of the so-called "troika" of debt inspectors currently overseeing the Greek program.
Greece has had to impose harsh austerity measures, including big cuts to pensions and salaries, to secure billions of euros worth of rescue loans from the IMF and other European countries that use the euro and avoid bankruptcy.
Last month, the eurozone's finance ministers agreed to offer Spain up to €100 billion to prop up its stricken banking sector, which has been weakened by toxic loans and assets from a collapsed property market.
The finance ministers for the 17 countries that use the euro will return to Brussels on July 20 to finalize the agreement, having first obtained the approval of their governments or parliaments, eurozone chief Jean-Claude Juncker said.
Spain — the fourth-largest economy in the eurozone — has been struggling to keep a lid on its government deficit in the midst of a recession while trying to support its troubled banking industry.
The creation of the central bank supervision will allow the EU's firewall fund to recapitalize banks directly rather than lending the money to a country's government — something that increases the country's debt load.
Ministers added that the final decision on Greece's request to renegotiate the terms of the country's bailout agreements will depend on the conclusions of the so-called "troika" of debt inspectors currently overseeing the Greek program.
Greece has had to impose harsh austerity measures, including big cuts to pensions and salaries, to secure billions of euros worth of rescue loans from the IMF and other European countries that use the euro and avoid bankruptcy.
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