EU on verge of agreeing bailout deal for Greece, reports claim
EU on verge of agreeing bailout deal for Greece, reports claim
Monday 15th March 2010
The eurozone is on the verge of agreeing a multibillion-euro bailout for Greece, reports claim.The deal, said to be in the region of €20 to €25 billion, will be put to a meeting of finance ministers on Monday, according to the Times.
It is believed Berlin eventually agreed to the bailout agreement following talks between the 16 countries which use the euro, despite public opinion in Germany being vehemently against the idea.
The Guardian claims the member states have agreed on "co-ordinated bilateral contributions" in the shape of loans or loan guarantees to Greece if the country finds itself unable to pay its huge debt and requests the help of the EU.
There has been growing concern in recent weeks regarding the stability of the eurozone in the wake of Greece's problems, with fears the crisis could spread to other weak economies such as Portugal, Italy and Spain.
At present Greece's deficit is four times higher then eurozone rules allow and as a result the Greek government has implemented austerity measures which have been met with outbreaks of violence and protests throughout the country.
Athens has yet to formally ask for assistance and the new alleged deal is seen as a last resort, with Germany and France the main backers. Britain and the other countries not in the euro are not expected to contribute.
Eurozone ministers will also have to find a way of manoeuvring the deal around the current rules which prohibit state bailouts.
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