D Friday, February 12, 2010 News EU agrees bailout of debt-struck Greece By Marcin Grajewski Taoiseach Brian Cowen arriving at the summit yesterday Picture: Reuters EU LEADERS struck a deal to provide finan- cial aid to Greece yesterday, in a move to stave off a broader crisis in the 16-nation euro zone. The details of the package were not expected to be finalised until early next week, but lead- ers suggested it could include some form of loans to Greece to help it service its debt. As they announced the deal, EU leaders also urged Athens to make deep cuts to its budget deficit to restore confidence in its economy, and the broader euro zone, and prevent its fis- cal crisis from spilling over to other high-debt states like Portugal and Spain. There is an agreement on the Greek situa- tion, EU President Herman Van Rompuy told reporters gathered at the summit in Brussels. Polish Prime Minister Donald Tusk said the support was likely to come in the form of loans. Athens needs to borrow 53billion this year to cover its deficit and refinance debts expect- ed to climb to 290billion nearly 120 per cent of its GDP. It has already promised to cut its deficit by four percentage points this year after it hit 12.7 per cent of gross domestic product (GDP) last year more than four times EU limits. The countrys economic crisis comes as un- employment reaches its highest level in nearly five years, and civil servants said they would step up recent strike action to protest freezes on public sector wages and an overhaul of the tax system. index.html2.html3.html4.html5.html6.html7.html8.html9.html10.html11.html12.html13.html14.html15.html16.html17.html18.html19.html20.html21.html22.html23.html