Monday, May 03, 2010

Greek bailout costs $145 Billion

SHOOT: That's a little bit more than Dubai cost. Now, who is next? Iceland? Ireland? Spain? Portugal?
clipped from
Chairman of the Eurogroup Jean-Claude Juncker addresses the media at the European Council building in Brussels, Sunday, May 2, 2010. Finance Ministers of the 16 nations using the euro met on Sunday to review a proposed bailout for Greece. (AP Photo/Yves Logghe)

BRUSSELS (AP) -- European governments and the International Monetary Fund on Sunday committed to pull Greece back from the brink of default, agreeing on euro110 billion in emergency loans on the condition Athens make painful budget cuts and tax increases.

France, Greece's most sympathetic partner, agreed there was no other choice.

"It's a very harsh plan because there was a lot of laxity," Finance Minister Christine Lagarde said.

But even Germany, long the fiercest critic of Greece's boundless spending, saw the need to back a euro-partner in such dire need -- if only to keep the shared currency out of more trouble. The crisis is already threatening other eurozone countries with huge financial problems, including Portugal and Spain.

"Economic reality has forced us to take very harsh decisions," Papandreou said, adding that "This is the only way we will finance our euro300 billion debt."

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