Friday, June 24, 2011

EU tells hard-up Greeks to unite

French President Nicolas Sarkozy and German Chancellor Angela Merkel at Brussels summit, 24 Jun 11Chancellor Merkel insists that Greece must swallow more austerity to get EU help

EU leaders have urged all Greek politicians to support new spending cuts and tax hikes, saying there is no alternative if debt-laden Athens is to qualify for a second massive bail-out.

The second rescue is being negotiated in Brussels. It is expected to be about 120bn euros (�107bn; $171bn).

"There will be a new programme for Greece, on which the Greek parliament will have to vote next week," said Germany's Chancellor Angela Merkel.

The UK says it will not contribute.

EU leaders have begun a second day of summit talks in Brussels dominated by the Greek debt crisis, which threatens the stability of the 17-nation eurozone.

"In the case of Britain I sought assurances that Britain wouldn't be pulled into a eurozone package for Greece, and I've received those assurances," UK Prime Minister David Cameron said.

Ms Merkel reiterated: "We will do everything to stabilise the euro."

She spoke of the Greek opposition needing to "fulfil its historic responsibilities".

EU pressure on Greece

The BBC's Matthew Price in Brussels says Europe's exasperation with Greece's economic woes is all too clear.

On Thursday night the EU leaders called on "all political parties in Greece to support the programme's main objectives", saying national unity was a "prerequisite for success".

Our correspondent says it was a direct challenge to the Greek opposition, which says it will not support the budget cuts when they are put to parliament next week.

For weeks Athens has been gripped by huge street protests and strikes by Greeks opposed to the tough bail-out conditions. Many of them think Greece is being sacrificed to save the euro.

Greece's government is proposing additional spending cuts worth 28bn euros over five years.

Herman Van Rompuy: "Required additional funding will be financed through both official and private sources"

If these are passed then Greece will get its next 12bn-euro instalment from the current 110bn euro bail-out package from the EU and International Monetary Fund.

Without this money Greece will default on its next loan payments due in mid-July.

However, many economists think it will be difficult for Greece to avoid default at some time in the future.

'No Plan B'

European Council President Herman Van Rompuy said the EU was also moving to make it easier for Greece to access EU development funds to help boost its economy.

Earlier, Luxembourg Prime Minister Jean-Claude Juncker urged Athens to meet its commitments under the bail-out programme.

"All conditions must be met," said Mr Juncker, who also chairs the groups of eurozone finance ministers. "You can't let anyone believe there is a Plan B. If Greece does what it has to do, we will do what we have to do."

Greek Prime Minister George Papandreou said his government was committed to pushing the austerity plans through parliament next week.

"Greece is committed, strongly committed, to continue a very important programme for major changes, radical changes, to make our economy viable," he said.

Source: http://www.bbc.co.uk/go/rss/int/news/-/news/business-13902794

abc world news with diane sawyer abc world news with diane sawyer 2011 abc world news with diane sawyer video abc world news with donnie mcclurkin ally asl on world news with diane sawyer

No comments:

Post a Comment