European leaders agree on long-term union

After tough all-night bargaining, European leaders appeared to salvage what had seemed to be a summit teetering toward failure by agreeing early Friday to use the continent's bailout fund to funnel money directly to struggling banks, and in the longer term to the idea of a tighter union.

The bank decision at overnight meetings in Brussels was aimed at helping Spain, which sought a (EURO)100 billion rescue to help its troubled banks and wound up facing rising borrowing costs for the government. (AP)