If the talks had failed, Greece could have faced bankruptcy and possible exit from the euro, which is the single European currency used since 2002.
European leaders announced the agreement with Greece nine hours after the deadline passed.
Brussels (AP) .- The heads of government of the eurozone on Monday reached a preliminary agreement with Greece for a rescue program that includes “serious reforms” and helps removing the immediate threat that Greece suffers a financial collapse and leave the euro.
The leaders announced the deal Monday European morning, nine hours after it passed the deadline they had set.
If the talks had failed, Greece could have faced bankruptcy and a possible exit from the euro, the single European currency, which uses since 2002. No country has left the euro, launched in 1999, and there is no mechanism for it.
During the three days negotiations between Greece and its international creditors, the Greek Prime Minister Alexis Tsipras, sought a better deal to convince his reluctant parliament in Athens this week, despite the financial collapse is closer every day.
The talks progressed at a meeting between Tsipras; German Chancellor Angela Merkel; French President Francois Hollande and President of the European Council, Donald Tusk. There were no details available at first.
The threat of expulsion from the euro zone put enormous pressure on Tsipras to accept unpopular austerity measures, because the vast majority of the population wants to remain in the eurozone .
Greece has requested a three-year package of EUR 53,500 million (US $ 59.500 billion) in financial aid, but that number grew by billions as the negotiations stretched and delegates calculated how much needed Greece to remain solvent.
The creditors are demanding tough austerity measures in return for the bailout of Greece third in five years.
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