Europe Agreed Save Greece
Economy February 26th, 2010
BRUSSELS – After a month of debate, France and Germany finally agreed to rescue the Greeks at the High Level Meeting (summit) European Union (EU) in Germany.
European leaders have agreed to evaluate the rules of the Euro zone by allowing the International Monetary Fund (IMF) provides assistance to Greece. However, the IMF sets out strict rules, especially for Greece which has violated many rules of the Euro Zone.
“Europe and Greece will rise from the crisis with more strength,” said Prime Minister (PM) Greece George Papandreou, was quoted as saying by AFP Friday (26/3/2010).
PM Greece out after French President Nicolas Sarkozy and German Chancellor Angela Merkel was willing to open themselves to rescue Greece.
Despite the agreement, but no announcement details how the funds will be disbursed the EU and the IMF to rescue Greece. Some EU diplomats said loans above 20 billion euros ($ 26, 5 billion). Currently, Greece wrapped 300 billion euros in debt and has an annual budget deficit of the highest.
President of the European Union (EU) Herman Van Rompuy said 16 countries in the Euro zone has been declared a commitment to bilateral loans disbursed as the ultimate assistance if the credit markets dried up. This agreement is a guarantee for the Greek government shareholders that Europe would not “abandon Greece”.
In addition to Greek problem, the government in the Euro zone are asked to set back to prevent the euro value of the currency turmoil and the bond market as happened in Portugal, Ireland, and Spain. Problem Purtugal, Van Rompuy explain different conditions with Greece. In Greece there fraud statistics turned into a crisis.
While Governor of the European Central Bank (ECB) Jean-Claude Trichet assess any breach EU rules will result in very new condition. When asked whether the IMF conditions for Greece could be in accordance with ECB policy, he said if the independence of the ECB can not be violated.
As a result of this agreement, the euro exchange rate down in New York. The euro fell to $ 1, 3277 at 22:00 GMT from the previous day’s position in the $ 1, 3315. “Investors are not satisfied (with the EU agreement),” said research director of the Global exchange rates Forex Trading Kathy Lien
