News / Europe

EU Leaders Agree on Second Bailout for Greece

Greece's PM George Papandreou addresses a news conference at the end of an European Union leaders summit in Brussels, June 24, 2011
Greece's PM George Papandreou addresses a news conference at the end of an European Union leaders summit in Brussels, June 24, 2011
Lisa Bryant

Stock markets rallied Friday after European Union leaders agreed on a new bailout for Greece, provided that Athens commits to more austerity measures. But the Greek deal fails to address fundamental problems threatening the future of the 17-member eurozone.

Speaking to reporters on Friday, German Chancellor Angela Merkel described the bailout deal for Greece agreed by European Union leaders in Brussels as "good."
Merkel said the 27-member EU was going to push Greece and another ailing eurozone member, Portugal, to respect austerity programs they have agreed to in exchange for massive loans. European finance ministers are meeting in early July to carve out the details of the new Greek rescue package, which will reportedly be worth more than $171 billion.

But the months-long eurozone crisis - which has not only hit Athens, Portugal and Ireland, but also threatens Spain - is far from over. First, Greek lawmakers must approve more austerity measures in exchange for a new bailout, and it's by no means certain they will do so.

But Simon Tilford, chief economist for the London-based Center for European Reform, says true reform is going to take more than just a parliamentary vote.

"Resolving the Greek crisis is going to need more than a series of bailouts," said Tilford.  "Basically, unless the Greek economy can return to economic growth, they won't be able to bring about ongoing improvements in the country's public finances."

Tilford says doing so means addressing fundamental problems not only facing Greece, but the 17-member eurozone as a whole.

"Going forward, one of two things have to happen within the eurozone," added Tilford.  "Either they bite the bullet and they forge some fiscal union that is they have a federal budget whereby countries with stronger public finances transfer moneys to those with weaker public finances."

Or, Tilford says EU leaders should address the huge trade imbalances within the eurozone marked by strong exporters like Germany and weak ones like Greece.

Janis Emmanouilidis, senior policy analyst for the Brussels-based European Policy Center, agrees the European Union must address fundamental imbalances within the eurozone if the monetary union is to remain intact.

"I think the member states will come out of the crisis," said Emmanouilidis.  "I'm not saying in total. I'm not saying some of the member states won't face even more severe problems. In the Greek case we don't know how the case will in the end start to develop."

If the EU resolves its eurozone debt problems, analysts like Emmanouilidis believe the block could emerge strengthened from the experience. If not, some analysts fear the decade-old currency zone may not survive, at least not in its current form.

You May Like

Philippines, Muslim Rebels Try to Salvage Peace Pact

Peace process faces major setback after botched military operation to find terrorists results in bloody gunbattle between government forces, Moro Islamic Liberation Front fighters More

Republicans Expect Long, Expensive Presidential Battle

Political strategist says eventual winner will be one who can put together strongest coalition of various conservative groups that make up Republican Party More

Video New Wheelchair Is Easier to Use, Increases Mobility

Engineers have come up with a lever-operated design that makes use of easily accessible bicycle technology 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.
Liberia's Almost Last Ebola Patient Grateful but Still Grievingi
X
Benno Muchler
March 26, 2015 3:41 PM
Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video US, South Korea Conduct Joint Military Exercises

The Eighth U.S. Army Division and the Eighth Republic of Korea Mechanized Infantry Division put on a well orchestrated show of force for the media this week during their joint military training exercises in South Korea. VOA’s Seoul correspondent Brian Padden was there and reports the soldiers were well disciplined both in conducting a complex live fire exercise and in staying on message with the press.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.
Video

Video Young Filmmakers Shine Spotlight on Giving Back

A group of student filmmakers from across the United States joined President Barack Obama at the White House this month for the second annual White House Student Film Festival. Fifteen short films were officially selected from more than 1,500 entries by students aged 6 through 18. The filmmakers and their families then joined the president and a group of celebrities for a screening of their films. VOA’s Julie Taboh reports.
Video

Video VOA Exclusive: Interview with Afghan President Ashraf Ghani

Afghan President Ashraf Ghani, during his first visit as president to Washington, gave a one-on-one interview with VOA Afghan Service reporter Said Suleiman Ashna, about his request for a change in U.S. troop levels, the threat from the Islamic State, and repairing relations with the United States and Pakistan. The interview was held at Blair House, late Sunday, in Pashto.
Video

Video California Science Center Tells Story of Dead Sea Scrolls

The ancient manuscripts were uncovered in the mid-20th century, and they are still yielding clues about life and religious beliefs in ancient Israel. As VOA's Mike O'Sullivan reports, an exhibit in Los Angeles shows how modern science is bringing the history of these ancient documents to life.
Video

Video Angelina Jolie Takes Another Bold Step

Hollywood actress and filmmaker Angelina Jolie has revealed she had her ovaries and fallopian tubes removed to lower her odds of getting cancer. Doctors say the huge publicity over her decision will help raise awareness about the importance of cancer screening. VOA’s George Putic has more

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More