Barroso on euro bail out plan: 'A good day for Europe'

EU leaders have agreed to set up a permanent mechanism to bail out any member state whose debt problems threaten the 16-nation eurozone.

The eurozone stability mechanism will require a change to the EU's Lisbon Treaty - but the wording has now been agreed, diplomats say.

Speaking ahead of the second day of the EU summit in Brussels, European Commission President Barroso said he hoped the plan would be "formally approved" and described it as a "a good day for Europe".