This content is not available in your region

Greece agrees bail-out deal to save economy

Greece agrees bail-out deal to save economy
Text size Aa Aa

The Greek government has agreed a deal with the EU and the IMF to save the country’s economy.

The agreement, aimed at freeing up billions of euros in aid, paves the way for more austerity measures. After holding a cabinet meeting, The Prime Minister George Papandreou said the country would have to make great sacrifices but that avoiding bankruptcy was the priority.

Thousands of Greeks took to the streets yesterday for the May Day rallies. Many are strongly opposed to the pay cuts, pension reforms and tax rises that are anticipated.

They argue that ordinary people should not be made to pay for a crisis they didn’t cause.

The protests also brought running battles in Athens between riot police and anarchists who threw rocks and fired fireworks. Police responded with tear gas. There are fears that the third austerity package in four months could bring further violence.

Later today the Greek finance minister is to head to Brussels for an extraordinary meeting of his counterparts from other eurozone countries.

They could then sign a deal which may be worth as much as 120 billion euros over three years.

The bail-out is designed to stop Greece from defaulting on its debt and prevent the crisis from spreading.