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Eurozone adopts new Greek rescue plan

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Eurozone adopts new Greek rescue plan

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The EU’s eurozone members have followed the Franco-German line and agreed on a new financial aid plan to rescue debt-stricken Greece.

The fourth EU summit of the year wasted no time in tackling the Greek problem, which threatens the euro and, if it leads to debt default, the global economy.

Extra money for Greece will come from both public and private sources, spreading the risks, and costs.

“The euro-area heads of state and government agree that required additional funding will be financed by both offical and private sources. They endorse the approach decided by the eurogroup on June 20th as regards the pursuit of voluntary private sector involvement in the form of informal and voluntary rollovers of existing debt,” said EU President Herman Van Rompuy.

The beefed-up rescue package comes with strings -sharper austerity for the Greeks – and is subject to a vote in the Greek parliament at the end of the month.