Eurozone increases bailout fund for struggling nations

Eurozone finance ministers have agreed to set up a permanent bail-out fund for the region of 500bn euros (£420bn; $673.2bn).

The fund, which will be called the European Stability Mechanism (ESM) will replace the current 440bn euro European Financial Stability Facility (EFSF).

The EFSF was set up last year to provide support to eurozone countries. The agreement comes a month ahead of expectations, and is one of many decisions to be made on the fund.

The new ESM will be part of a "comprehensive package" of measures European leaders are hoping to agree in late March to resolve the eurozone debt crisis that has overshadowed the region for the past year.

Source: BBC News