EU leaders agree to Greece bailout

European leaders have reached an agreement to bailout Greece, which is suffering from a huge debt crisis.

At midday today, EU President Herman Van Rompuy confirmed a deal had been struck between the EU's largest countries, Germany and France, and the Greek government to provide a financial support package. The European blue chip Dow Jones Euro Stoxx 50 index rose six points, or 0.2%, while the FTSE index of UK shares was up 0.8%. The yield on Greece's two-year sovereign debt fell by 0.54% on the news, to 4.92%. German chancellor Angela Merkel told Bloomberg: "Greece won't be left alone, but there are rules, and these rules must be adhered to." Greece has seen its deficit hit 12.7%, ...