"It is the first time since the beginning of the crisis that we can say that politics and the markets are coming together", said President Barroso after the meeting of the Heads of State or Government of the euro area. He underlined that the credible package adopted today "deals with both the concerns of the markets and of citizens. It responds also to the concerns of all Member States of the euro area. It is a package that every government has signed up to".

President Barroso called on "every one to go out and defend and implement with determination this package". "The situation requires full engagement by everyone at the summit, and I believe we will have it."

"Nobody should be under any illusion: the situation is very serious", said President Barroso in a statement in advance of the euro area summit on the 21 July. He urged European leaders to "show the ethics of European responsibility", and stated that the minimum to be done at the summit should be to provide clarity on the following points:

• measures to ensure the sustainability of Greek public finances;
• feasibility and limits of Private Sector Involvement;
• scope for more flexible action through the European Financial Stability Facility (EFSF);
• repair of the banking sector;
• measures to ensure the provision of liquidity to our banking system.

President Barroso also announced that the Commission has created a "Task Force for Greece" in order to bring growth back to the country. On financial regulation, the Commission adopted the proposal for the transposition of the Basel III agreement on bank capital requirements. "Once again, with this, Europe will be the first mover", the President added.

Press release

Graham Bishop's blog: 7AM thoughts on the eurozone agreement - leaders have gone a long way but full details awaited. View