Protests have continued in Greece as Euro zone finance ministers said they have agreed a way to help the cash-strapped country.
Over recent weeks stringent government spending cuts have been urged by the EU bloc to deal with the country’s massive deficit.
Greece needs to reduce its national debt by three percent of GDP by 2012 – To attract investment, Athens has been forced to offer high rates of interest on its repayments.
A meeting of the Eurogroup, the 16-country currency bloc, has now agreed measures to avoid a disaster for the Euro, should Greece default, but so far there are no details.
Greece’s total deficit is 300 billion euros. It needs to refinance 54 billion euros this year as the first step on the road back to financial stability.
Yesterday the Greek government brought in one of its most unpopular measures to aid its recovery, that of higher VAT rates.
The Eurogroup promise still needs summit approval but so far Greece has refrained from asking for an EU bailout