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EU urged to block Greece bail-out
Date 22/06/2011 22:19  Author webmaster  Hits 1068  Language Global
22 JUN 2011

European leaders have been urged to scrap plans for a second Greek bail-out – as the Athens government wins a critical vote of confidence in parliament.

By Louise Armitstead | The Telegraph

Leading London-based think tank Open Europe has claimed that a fresh bail-out, expected to be around €120bn (£106bn), will almost triple taxpayers’ existing exposure to Greek debt.

“Despite a second Greek bail-out being EU leaders’ preferred option, it is only likely to increase the economic and political cost of the eurozone crisis,” said Open Europe in a report.

The warning came ahead of a crucial vote of confidence in the Greek government, which was won - as expected - late last night.

The vote came at the end of a three-day debate on George Papandreou’s unpopular package of spending cuts and asset sales, which faces another vote on June 28. The prime minister has just a six seat majority in the 300-member parliament.

On Sunday, European leaders said they would not release the next €12bn tranche of international aid unless Greece passes the measures.

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