Finance ministers from the 17 countries that use the euro approved the payment of Greece’s next batch of bailout loans Friday, avoiding a potentially disastrous default, but acknowledged the country’s debt remained too high.
Greece’s debts are only one piece of Europe’s economic puzzle, and the finance ministers were meeting in Brussels on Friday to address two more complicated — and arguably more important — issues: boosting the financial firepower of the eurozone’s €440 billion ($607 billion) bailout fund in order to prevent the larger economies of Italy and Spain from spinning out of control and forcing weak banks to boost their capital buffers to shore up their defenses against market turmoil.
Greek Finance Minister Evangelos Venizelos welcomed the news that Athens would get the next €8 billion ($11 billion) installment, calling it a “positive step.” A day earlier, Greek lawmakers approved new, deeply contentious austerity measures.
The new measures will ensure next year’s fiscal targets are met and “sets the basis for the necessary structural reforms,” he said.
(source: AP)
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