|July 1, 2012
The deal also tried to sort out a problem with a previous agreement to lend money to Spain's banks. There had been confusion over where that money would come from, and which lenders would have priority in the event of a default.
The eurozone's bailout fund (backed by taxpayers' money) will be taking a stake in failed banks - risk has been increased”
The new agreement made clear that the EU's existing bailout fund - the EFSF - will provide aid under the current rules until the new fund, the European Stability Mechanism (ESM), begins operations. The ESM is due to be launched next month.