We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

President of the Eurogroup Jean-Claude Juncker during a press conference earlier today to announce the bailout for Greece AP Photo/Virginia Mayo

Eurozone agrees on new €130 billion bailout deal for Greece

The second bailout will avoid the risk of a Greek default next month and contains strict rules for Greece to control its finances.

EUROZONE FINANCE MINISTERS have agreed a second bailout for Greece worth €130 billion after more than 12 hours of negotiations which ran throughout the night.

The deal is designed to avoid the risk of Greece defaulting next month and contains strict rules for Greece to control its finances.

Under the terms of the new agreement Greece’s creditors have to agree to accept deeper losses on their debts. The European Commission will have a permanent presence on the ground in Greece to monitor how the economy is managed.

Greece has undertaken to reduce its debts to 120.5 per cent of its GDP by 2020 – twice the amount permitted by the fiscal compact.

Minister Brian Hayes who attended the meeting of Eurozone finance ministers said on RTE’s Morning Ireland this morning that the deal was “significant” and it would bring “clarity” to the situation in Greece.

European finance ministers this morning said that the deal is a blueprint for putting the public finances and the economy of Greece onto a sustainable footing, which will safeguard financial stability in Greece and in the euro area as a whole.

Greece will introduce a legal framework in its constitution to ensure that priority is granted to debt servicing payments. The country will also introduce a new mechanism to monitor the money that is to be used to service the country’s debt.

Greece’s two coalition parties have given assurances that the austerity programme will continue to be implemented regardless of the outcome of the upcoming general election.

Eurozone finance ministers said they were aware of the “significant” efforts already made by Greek citizens in accepting austerity programmes but that further major efforts by Greek society are needed to return the economy to sustainable growth.

Head of the IMF Christine Lagarde welcomed the bailout package and said it will pave the way for a “gradual” resumption of economic growth for Greece.

Yesterday president of the Eurogroup Jean-Claude Juncker stressed that Greece is likely to stay within the eurozone, saying that it would be a “bad solution” for both Greece and the euro itself if the country left the single currency market.

Greek debt deal ‘not enough’ to save country – diplomat >

Greek minister ‘optimistic’ about approval of second €130bn bailout >

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.