At long last, there’s a deal in place to help contain the debt crisis in Europe and keep the euro currency in action. Exchange traded funds (ETFs) are soaring on the news in keeping with the adage that the most beaten-down areas perform the best in recoveries.

Looking at the leaderboard this morning, European-focused ETFs are charging ahead this morning led by two countries that many feared were next in line for trouble: Spain and Italy. iShares MSCI Spain (NYSEArca: EWP) and iShares MSCI Italy (NYSEArca: EWI) are up by more than 10% so far today.

It’s no surprise. The European Union’s jaw-dropping $1 trillion rescue deal should lay to rest concerns about continuing issues in Europe, particularly in the troubled PIIGS group of countries. The PIIGS are Portugal, Italy, Ireland, Greece and Spain. The deal was reached early today. [U.S. Dollar Has Moment In the Sun.]

In a move called the “nuclear option,” the European Central Bank is going to buy both government and private debt to grease those markets and keep borrowing costs low, says the Associated Press.

The markets heartily approve of the move. Following the agreement, stock market futures soared to their daily limit and upon opening, the Dow Jones Industrial Average rocketed more than 350 points.

Aside from the Italy and Spain ETFs, the rest of the top-performing funds today are nearly all Europe-focused ETFs. This might be the beginning of a beautiful friendship, but bear in mind that several of these ETFs are well below their long-term trend lines. Italy and Spain are both more than 20% below the mark. [Tom Lydon Says Why He’s Bullish.]