The decisions underscore the move away from the austerity-driven measures that characterized European leaders' first attempts to counter the crisis that emerged in Greece in 2009.

Financial-market tensions have abated, thanks mainly to a pledge by the European Central Bank, first made in late July and yet to be acted on, to put a floor under the bond markets of vulnerable countries such as Spain or Italy.

Greek bonds rallied, with the 10-year yield dropping 17 basis points to 13 percent, near the lowest since a March debt restructuring. The euro was little changed at $1.3085 at 5:40 p.m. in Brussels.

With the summit deadline looming, finance ministers from all 27 European Union countries opened a packed day and night of decision-making with a 4:30 a.m. accord to make the ECB the hub of bank supervision in the euro area.

Eoin Treacy's view Agreement on the ECB's role as a banking regulator can be perceived as an additional step towards closer cooperation within the Eurozone and is to be welcomed. The Euro Stoxx 50 Index hit a new 16-month high this week and while there is scope for additional consolidation in this region a sustained move below the 200-day MA, currently near 2450, would be required to question medium-term scope for additional upside.