EU nations agree on new "fiscal compact"

Twenty-five European Union countries have signed up to a new treaty to impose tougher fiscal controls and sanctions. The Czech Republic and Britain are the only two countries that will not be part of the new 'fiscal compact'.
British Prime Minister David Cameron insisted he was right to veto the new treaty during a dramatic summit last month. He added he would be watching closely to ensure Britain's interests would not be harmed.
German Chancellor Angela Merkel said she hopes the new rules will ensure there can never again be a repeat of the debt crisis that has engulfed the Eurozone in the past two years.
Meanwhile, Greece and its bondholders have come closer to an agreement significantly reducing the country's debt and pave the way for it to receive a much-needed (euro) 130 billion ($170 billion) bailout – though the deal is not yet sealed, and may take the better part of the week to reach.


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