EU leaders agree to 'fiscal compact': reports (by Virginia M. Harrison)
SYDNEY (MarketWatch)-- European leaders have agreed to a new "fiscal compact" on stricter budget and debt rules for the euro zone at a leaders' summit in Brussels, according to reports Friday, citing an European Union official. The reports suggested the agreement was part of the draft conclusions of the summit, with no agreement as yet on how best to implement the changes. Separately, a report from Dow Jones Newswires stated the euro zone's permanent rescue fund would be allowed to have a total endowment of 500 billion euros ($667 billion) on top of funds in a transitional rescue fund, according to the draft conclusions.