EU leaders frames eurozone crisis rules

LONDON. October 29. KAZINFORM Tough rules for the eurozone, aimed at averting another financial crisis, have been agreed at an EU leaders' summit; Kazinform refers to BBC.

The leaders agreed to a permanent fund to help the euro in times of crisis, and to laws giving the EU the power to check national budgets.

EU officials said the eurozone had almost collapsed earlier this year because it lacked such a mechanism.

Germany wants limited changes to the EU treaty to reinforce the changes, but is facing resistance from other countries.

Meanwhile, UK Prime Minister David Cameron won backing for his battle against a 5.9% rise in the EU budget.

Germany and France were among 10 nations supporting Mr Cameron's attempt to limit the budget increase to 2.9% - a rise that would still cost UK taxpayers roughly £435m (500m euros).

The meeting will conclude later on Friday.

Treaty question

The BBC's Jonty Bloom, in Brussels, says the new eurozone rules are designed to force a country to put its house in order long before its economic problems threaten the eurozone.

Herman Van Rompuy, the president of the EU Council, hailed the summit's achievements, saying: "Today we took important decisions to strengthen the eurozone; Kazinform cites BBC.

See www.bbc.co.uk for full version