News / Europe

Agreement Reached on Financial Rescue Package for Greece

TEXT SIZE - +

European Union finance ministers are expected to announce the amount of a massive, EU-International Monetary Fund rescue package for Greece, hours after the parties reached agreement on it.

The European Union-IMF rescue package comes with a painful caveat - agreement by Athens to take further austerity measures, notably cutting public salaries, bonuses and pensions and raising taxes.

Greek Prime Minister George Papandreou outlined the details in a nationally televised address Sunday. He said he would do anything to avoid Greece going bankrupt and he urged Greeks to accept great sacrifices.

At a news conference later, Greek Finance Minister George Papaconstantinou said the belt-tightening measures would help his country get back on its feet.

"These measures have a counterpart and the counterpart is the significant financial help through this mechanism that we helped create and which is a step, a big step forward for the European Union," said George Papaconstantinou, Greek Finance Minister. "Through this mechanism and this financial help Greece will be shielded from the international markets and will be able to put its house in order."

In Brussels, finance ministers from the 16 EU nations sharing the euro currency, including Greece, met to give final approval to the rescue package. The final deal is expected to be endorsed by European leaders at a special summit later this month.

As he arrived at Sunday's meeting, EU Monetary Affairs Commissioner Olli Rehn gave a thumbs-up to the new Greek spending cuts.

"The Greek government has today announced a very comprehensive and ambitious economic program which I indeed welcome," he said. "I'm confident that the eurogroup, the euro area member states, will today endorse this program and I'm recommending to the eurograoup today to activate the [aid] mechanism."

The aid deal comes after weeks of negotiations. Eurozone member Germany has been particularly reluctant to endorse an agreement without further austerity measures from Athens.

In Greece, tens of thousands of protesters took to the streets Saturday to register their unhappiness with the belt tightening. Greek unions have called for a national strike on Wednesday.

The Greek government says it has no other choice but to cut spending, faced with the country's skyrocketing public debt and deficit. Last week, ratings agencies downgraded Greece's ratings to junk status.

You May Like

Report: MI5 Tried to Recruit Woolwich Murder Suspect

Suspect's friend, arrested Friday, told BBC Michael Adebolajo had been approached by British security service months ago to work as informant More

Kerry Calls on Nigeria to Stop Human Rights Abuses

After meeting with Nigerian president, US top diplomat welcomes Abuja’s efforts to investigate, reign in excesses by troops fighting Boko Haram militants More

Vintage Apple Computer Sells for $671,400

Auctioneer says buyer is from 'Far East' and wishes to remain anonymous More

Pakistan Reiterates Opposition to US Drone Strikes

Day earlier US President Barack Obama justified 'constrained' drone usage to save lives More

Study Identifies Risks of Human Spread of H7N9 Bird Flu

Study suggest that international measures to contain the H7N9 influenza, in the event of severe outbreak, will need to be targeted in Asia More

Violence Continues in Conakry Over Upcoming Elections

Opposition has called for boycott of elections More

Video Syria's Civil War Fuels Violence in Iraq

Analysts say al-Qaida-linked militants are flowing back and forth from both countries More

Video Star Trek Influence Lives Long and Prospers

As new movie thrills, many are once again discussing the iconic franchise's influence on society, science and technology More

OECD: Developing Green Cities Key to Sustainable Future

OECD suggests strategies to mitigate rapid growth, industrialization in urban centers, which produce about two-thirds of greenhouse gas emissions More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Video

Video Volunteers Help Revive LA's Concrete River

The Los Angeles River is a concrete drainage channel through much of its 80-kilometer length. It channels waste-water from storm drains and has become a receptacle for much of the city's trash. But as Mike O'Sullivan reports, the river is slowly being restored with the help of volunteers, who take part in an annual clean-up.