Wednesday, March 14, 2012

Eurogroup Approves Second Greek Bailout

Wall Street Journal
March 14, 2012

The euro-zone countries Wednesday finally signed off on Greece's second bailout program, ending a protracted and dramatic negotiating process that started last July.

Their hope is that the €130 billion ($169 billion) package—funded mostly by euro-zone countries and the International Monetary Fund—will be enough to keep Greece funded until 2014-2015.

But talk of a third Greek bailout has already begun, even while the ink is still drying on the second package, especially following a report by European Union experts highlighting the risks to structural-reform implementation and predicting stagnation, at best, for 2013. Greece is in its fifth consecutive year of recession.

A statement from Jean-Claude Juncker, chairman of the Eurogroup of euro-zone finance ministers, said that "euro-area member states have today formally approved the second adjustment program for Greece" and added that "all required national and parliamentary procedures have been finalized."


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