Leaders in the European Union collectively backed fiscal union pact and also agreed on the details of a _500 billion permanent bailout fund for the euro zone.

The share markets in the European region rose slightly after the European Union summit in which the leaders showed a united front and agreed upon the crucial steps to address the crisis.

London's FTSE 100 increased 0.7%, Frankfurt's DAX was up 0.7% and Paris's CAC-40 was up 1%. Greek Prime Minister Lucas Papademos had gown a step ahead in discussions with private-sector creditors and according to European ministers; the two sides are expected to agree on a deal soon.

The uncertainty remained as the government bond yields in Portugal continues to increase. Portugal's 10-year government bond yield increased above the 16% mark this Monday. Analysts say that there is no deal on the second bailout package for Greece and Portugal is moving towards a dangerous territory.

They say that bondholders are realizing that they might have to write-off some of their dent to Portugal in the same as Greece. The euro-zone's move toward a closer fiscal union and progress in talks between Greek leadership and private lenders have sent a positive signal to the investors indicating a possible end to the crisis in the coming future.