EU plans to offer concessions to new Greek government

Friday, 15 Jun 2012, 17:42


According to the FT, the EU is prepared to present a package of incentives to a new Greek government to try and convince Athens to honour the terms of its bailout, following the high stakes elections this weekend.

The paper says the offer would include reduced interest rates and an extended payment period for bailout loans, as well European Investment Bank funds to boost Greek public works programmes.

The Wall Street Journal reports that EU officials are concerned by the rise of radical left party Syriza, which secured second place in the last elections, with the group's leader Alexis Tsipras pledging to tear up Athens' bailout agreement, but keep Greece in the eurozone.

Tsipras has made it clear that he believes German chancellor Angela Merkel's threats to suspend Greece's funding if the country breaches its rescue terms are a bluff, saying EU leaders are too committed to maintaining the eurozone not to make concessions, says the paper.

The Irish Times says Spanish borrowing costs also rose to record levels yesterday, undermining the country's bailout programme and worsening the debt crisis, as Europe awaits the results of the Greek elections.

According to the paper, expected fallout from the Greek polls is likely to put EU leaders under extreme pressure as they battle to tackle severe market disruption and loss of faith in the eurozone.

Meanwhile, the Independent reports the population of Athens' are fearful of a future of uncertainty, poverty and violence, as well publicised attacks on the wealthy and immigrants create a charged atmosphere ahead of the elections.

Greek communist MP Liana Kanelli, "Violence is escalating tremendously." Kanelli was assaulted on live television by a member of the far-right Golden Dawn party, and claims that half of Greek police special forces have voted for the anti-immigrant, neo-Nazi organisation, says the paper.

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Comments (1)

Curse them

- Sat 16-Jun-2012, 08:11

Whatever they do they are NOT going to save neither the euro zone nor the EU thank God.

May they be cursed forever for robbing us of our FREEDOM and making us their colony.