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Greece saved - and Europe pays

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Greece saved - and Europe pays
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The emergency aid for Greece has eased fears that the country will default on its sovereign debt.

But the package – the biggest ever given to a country – still has to be approved by Eurozone parliaments.

Markets are sceptical that Athens will be able to reduce its budget gap from 13 percent to three percent by 2014.

“I don’t think the Euro is heading for a big fall, but I don’t think it is in a fit state to rise either. The question is, will Greece make it? This is a quantum leap for Greece, and everyone is wondering if they will manage it.” said Robert Halver, an analyst on Frankfurt’s Stock Exchange.

It has also left some wondering which fiscally-challenged Eurozone country might be next for a bailout:

“I’m worried because I think this is the tip of the iceberg, and what’s been done will come back to haunt us.” said one man.

The Euro has lost around 12 percent since November, when Greece’s debt problems began to escalate.

Observers say the EU has a long way to go to restore its credibility with financial markets are repeated delays in coming to Greece’s aid.