Greece gets a £22bn bailout to help stabilise vulnerable euro
By Karl West
Last updated at 10:05 PM on 12th March 2010
Greece finally won a £22billion bailout from the eurozone countries last night to help stabilise the vulnerable single currency.
Germany is understood to have finally bowed to pressure, despite facing huge internal resistance to the drastic measure.
Officials in Brussels claimed British taxpayers would not have to contribute to the rescue deal but critics said it was obvious such a large bailout would have impact around the European Union bloc - including the UK.
A riot police officer tries try to avoid a petrol bomb during clashes in central Athens yesterday
Finance ministers of the 16 member states that use the euro, including Greece, are preparing to finalise details of the rescue on Monday.
Brussels sources said eurozone countries have agreed a set of 'co-ordinated bilateral contributions' in the form of loans or loan guarantees to Greece that will help ease the country's financial crisis if Athens cannot re-finance its soaring debts.
The aid package will go a long way towards nursing Greece's finances back to health, but some European countries believe Athens could need up to £50billion by the end of the year.
Fears of a Greek default this year have undermined the euro, putting the Greek government under intense EU pressure to introduce austerity measures to address a huge budget deficit.
In response, rioters have taken to the street as the country has been gripped by a series of national strikes.
Earlier this week hundreds of masked and hooded youths punched and kicked motorcycle police in Athens as riot police responded with volleys of tear gas and stun grenades.
Last night top level sources in Brussels told the Guardian a deal had been reached.
One said: 'There have been quite intensive preparations under the eurogroup. We have the ways and means to do it.
'It will be a co-ordinated approach of bilateral contributions [between EU governments].
'A bilateral contribution can be a loan or a loan guarantee. The guarantees will facilitate the kind of funds potentially needed in this context.'
The latest development comes as EU economic commissioner Olli Rehn told German media the EU would 'lose international credibility' if it allowed Greece to collapse.
Read more: http://www.dailymail.co.uk/news/worldnews/article-1257577/Greece-gets-22bn-bailout-help-stabilise-vulnerable-euro.html#ixzz0i0jMZJIv
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