European Union to set up eurozone

European Union leaders have agreed to set up a eurozone rescue fund. This step has been taken for permanent safety net to bail out any member state whose debt problems threaten the 16-nation eurozone.The new mechanism, which will start from 2013, will succeed the eurozone's temporary bailout fund. President of European Union Commission has said that after amendments in European agreement, Euro will get stronger position in market. The agreement comes as Spain raised just under 2.5 billion euros on the bond market, but at heavy cost, paying twice as much interest as Germany would have. Meanwhile, rating agency has warned it may again downgrade Greece's credit rating over concerns about the country's ability to cut debt to sustainable levels