Greece blinks first: Broke nation finally bows to EU demands for austerity measures

In a showdown over the fate of Greece, Europe’s most powerful figures have descended on Brussels to make a long overdue decision over a bailout package for Athens in crisis talks this evening.

The move raised hopes that an imminent Greek exit from the euro could be averted by an agreement to continue international bailout funding for a further six months.

In a statement the Eurogroup said: “The Eurogroup broadly welcomed a new version of the reform plan submitted by the Greek authorities this morning, before the Eurogroup meeting, and considered it to be a positive step in the process.”

The Greek government is thought to have finally buckled after realising that EU creditors were prepared to let Athens leave the euro if it didn’t toe the austerity line.

However, critics cautioned celebrating a deal too soon.

Michael Hewson, chief market analyst, at CMC Markets UK said: “Submitting proposals is one thing, having them accepted by the creditors is another and even then they then have to be ratified by the Greek parliament, which is by no means a given in a country where recent polling is generally supportive of the governments negotiating stance.

“This week EU creditors have a serious decision to make, because ultimatums to Greece just won’t cut it, and certainly won’t result in a long term solution to the debt sustainability problem.”

Full article: Greece blinks first: Broke nation finally bows to EU demands for austerity measures (Express)

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