Harper encouraged by Euro zone deal

World leaders – including prime minister Stephen Harper – are speaking out about Europe’s new plan to deal with the debt crisis.

Speaking in Australia this morning, Harper called the European Union debt-crisis package a “step in the right direction.”

Late yesterday European leaders agreed on a deal to slash Greece’s debt. Banks will take 50 percent losses on the Greek bonds they hold. That would cut Greece’s debt load, the very problem that triggered the crisis almost two years ago. In addition, Greece will get another $140 billion in bailout money from the International Monetary Fund and the 17 nations using the Euro.

China is also said to be interested in contributing some cash.

Harper says the world has been waiting for Europe to do something big to avert a global recession.

“I am encouraged to learn of the agreement to recapitalize European banks and the announced intention to leverage the European Financial Stability Fund, and lighten the burden of Greece’s debt. These are steps in the right direction. Progress has genuinely been made.”

Harper will join G20 leaders in France next week to review progress.

Video: Brittany Gogo reports: