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UK may be forced into second Greek bail-out
Date 16/06/2011 17:52  Author webmaster  Hits 1112  Language Global
16 JUN 2011

Britain could be sucked into a second bail-out after European diplomats confirmed that the EU Financial Stabilisation Mechanism (EFSM) could be tapped for up to €8bn (£7bn) for an additional rescue package for Greece.

By Bruno Waterfield and Louise Armitstead | The Telegraph

Germany is insisting that the EFSM - to which all EU countries, including Britain contribute - is used to help Greece potentially giving the Government a €1.2bn liability to Greece's debt crisis.

A decision on the new aid for Greece will be taken at a meeting of Europe's finance ministers on Monday.

Meanwhile, violence in Athens and the failure of European leaders to resolve disagreements over the Greek debt crisis combined to rattle credit markets again on Wednesday.

Greek bond yields soared as traders dumped the low-rated sovereign debt amid angry demonstrations and strikes in Greece.

George Papandreou, the Greek prime minister, offered to resign as two more political supporters of his tough austerity measures defected.

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