Herman Van Rompuy: EU deal breaks 'vicious cycle'

EU leaders have agreed to use the eurozone's planned bailout fund to directly support struggling banks, without adding to government debt.

After 13 hours of talks, they also agreed to set up a joint banking supervisory body for the eurozone.

Announcing the deal, EU Council President Herman Van Rompuy said it would break the "vicious circle" between banks and national governments.