This is a major story that will have consequences across the world: at a European Union Summit, political leaders and banks reached a deal to hopefully end the Greek deficit crisis, recapitalize banks and create a stronger European bailout fund. This deal can dramatically help the stability of the European and world economy.
Here are the three major points of the deal:
1) Greek deficit: Greece had been facing a major debt problem with a likely default looming, despite austerity measures already taken. With this agreement, Greek bondholders will write-down 50% of Greece's bond debt, resulting in a loss to bond-holders of 100 million Euros.
2) Bailout fund: The European Financial Stability Facility was considered ill-prepared to deal with additional bailouts, with Ireland, Spain and Italy all potentially requiring assistance. As part of this agreement, European leaders will boost the fund by one trillion Euros.
3) Recapitalizing European Banks: As part of this agreement, some European banks in must raise more capital, totaling 106 billion Euros.
The deal is already having a positive affect on world stock markets, with US stock's up 2% as of the time of this writing.