Greece’s Prime Minister, George Papandreou, has pledged to push through legislation in the Greek parliament for extra tax rises and spending cuts. They are key elements in a new financial aid plan to rescue the debt-stricken country agreed at the EU summit in Brussels.
And German Chancellor, Angela Merkel believes further action is needed to avoid a crisis and strengthen the stability of the euro zone.
“We will do everything to stabilise the Euro as a whole, we will encourage Portugal and Ireland to take action and implement their programs. It was a good message, that Greece came to an agreement about her contributions with the Commission, the ECB and the IMF – the troika,” she said.
In a draft statement the leaders said the approval of the austerity package would pave the way for 12 billion euros’ worth of aid in early July and provide the basis for a second rescue package backed by the EU and the International Monetary Fund. The legislation will be put to the Greek parliament next week.