Markets higher after euro rescue deal

LONDON (AP) — A deal to get almost all EU countries to tie their economies closer together received some support in the markets on Friday, even though European leaders failed to reach unanimity on the plan, with Britain opposing the plan.

Following the summit, German Chancellor Angela Merkel confirmed Britain was the only country in the 27-nation European Union to hold out against supporting the new treaty.

The new treaty will penalize overspending governments in a bid to avoid a repeat of Europe’s debt crisis. Germany and France, the two biggest economies in the 17-nation eurozone, had hoped to persuade the whole European Union to back a change to the current EU treaty. Britain’s refusal means they will have to settle for a new intergovernmental agreement instead.

Following losses in Asia and an early retreat in Europe, market sentiment improved somewhat.

“The principle of a strong commitment to a new ‘fiscal compact’ — tough discipline and sanctions in case rules are breached — and stronger coordination of economic policies has been established,” said Herve Goulletquer, an analyst at Credit Agricole. “This is a significant step forward. What markets want now is to be sure that it will work. The devil is too often in the detail.”