European Union To Rescue Greece

Expect more stocks to be bullish Thursday now that the European Union will keep Greece from defaulting on its debt.

EU President Herman Van Rompuy announced Thursday that European leaders have reached a deal to provide aid to Greece to stave off a broader crisis in the 16-nation bloc that shares the euro. The agreement was forged in talks between Van Rompuy, European Commission President Jose Manuel Barroso, French President Nicolas Sarkozy, German Chancellor Angela Merkel, European Central Bank President Jean-Claude Trichet and Greek Prime Minister George Papandreou.

A Spanish source told Reuters that details of the aid would be worked out at the latest by Tuesday, when EU finance ministers are due to hold a meeting.

Athens needs to borrow €53 billion ($75 billion) this year to cover its deficit and refinance debts. Its debt is expected to grow to more than €290 ($398.5) billion this year.