Greek bail-out: George Osborne says deal is ‘good for Britain’

Published on Tuesday 21 February 2012 13:11

CHANCELLOR George Osborne claimed that the Greek bail-out was “good for Britain” as he hailed this morning’s deal as a step towards resolving the eurozone crisis.

Single currency governments approved a second massive rescue package for the ailing nation after more than 12 hours of talks in Brussels.

Haggling over figures, financial targets and Greek government belt-tightening pledges went on through the night in a last-ditch attempt to rally markets and put crisis-hit Athens back on the path to economic recovery.

Speaking to reporters as he arrived for an EU finance ministers’ meeting in Brussels this morning, Mr Osborne said: “Of course, resolving the Greek situation is only part of resolving the eurozone crisis but I think we took a really significant step towards that last night and that is good for Britain because resolving the eurozone crisis would be the biggest boost that Britain could get for its economy this year.”

The Chancellor said the package was a major step towards securing debt sustainability in Greece.

“That’s been the crucial missing ingredient,” he added. “They have not, in the past, come up with a sustainable position for Greece. I think they have made real progress now towards giving a sustainable debt position for Greece.

“Of course the Greek people, the Greek political system has to deliver really difficult decisions now but I don’t think Greece has any other option.

“The other significant point about last night’s deal was that the rest of the eurozone signalled a willingness to stand behind their currency and stand behind Greece and frankly all along the failure to deal with the Greek situation has caused uncertainty.

In return for the latest 130 billion euro (£110 billion) bail-out and a private creditor debt write-off worth about another 100 billion euros (£84 billion), the Greek government is pledged to implement fully a severe austerity package of pay, pension and jobs cuts, as well as finding savings of 325 million euros (£270 million) in this year’s national budget.

The Greek economy received a 110 billion euro (£91 billion) bail out from the EU and IMF in 2010 but it was not enough to lift Greece out of crisis.

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Chappit Tatties

Wednesday, February 22, 2012 at 07:20 AM

""".....Of course the Greek people, the Greek political system has to deliver really difficult decisions now but I don’t think Greece has any other option." What dreadful English from a supposedly educated person. It's all Greek to me!!!

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allymax

Wednesday, February 22, 2012 at 05:12 AM

Penalties exist for 'leaving' the euro, but if they, Greece, are 'cut-adrift' BY the Eurozone, then those same penalties won't exist. The best option for Greece is to keep rioting, sign no Euro' agreement, and allow themselves to be 'cut-adrift'; it's their best possible scenario immediately, and for the short term recovery Greece would face......................Seriously, Greece face horrendous control and constraints by Euro' if they signed up to this agreement; why do you think Odious is so happy it's there? It's a 'sovereign debt', and Odious wants Greece to sign, but Greece would be the biggest fools ever if they signed this 'British-built' highway robbery of a Euro' deal. ....Like I say, both Germany and France totally expect Greece to not sign, 'default', and be 'cut-adrift'. As a matter of fact, there's another 3 Euro' countries waiting to get their 'Euro' bail-outs' too. Greece would be doing everybody a favour if they were to be cut-adrift, and hulk-it.

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antiparasite

Wednesday, February 22, 2012 at 01:59 AM

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wl

Tuesday, February 21, 2012 at 08:42 PM

I don't know if the Greek people really know what they want. Option 1 is to accept financial control (stranglehold) by the European Central Bank (this is not a EU matter) and face huge debt repayments in Euros and option 2 is to leave the Eurozone, return to the drachme and devalue it against the Euro and face huge debt repayments in Euros. Which of these 2 is worse?Greece certainly got the governments they voted for since the introduction of the Euro! But I feel sorry for the ordinary Greek people.

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allymax

Tuesday, February 21, 2012 at 08:19 PM

It's good for City of London, not Britain; when have City of London shred their massive massive wealth with the people of Britian\Scotland? Never. ....................................Besides, Odious Osborne is fooling himself if he thinks the Greek people will accept this hugely constraining 'debt' as Odious calls it, the German finance minister is right now compiling a 'cut-adrift' euro policy for Greece, allowing it to 'default' on its debts, and be expelled from the eurozone. ....If the Greek people continue to protest this 'debt-deal' talks of, then Germany and France, thus the Eurozone, are willing to cut Greece free, and let them hulk-it on their own....Strangely enough, I think that's what the Greek people want ! .......Like I say, Odious Osborne is an imbecile of the highest Bullingdon boy order; he's simply fooling himself, and no-one else !

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Psychological

Tuesday, February 21, 2012 at 05:06 PM

#1 Even if, as you suspect he really means London, it would still be good for Britain (if Osbourne is right). The UK has large debts that need to be paid, and exactly which part of the Britain it comes from is not as important as paying the debt.

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KINGFISHER1

Tuesday, February 21, 2012 at 03:57 PM

Mr Osborne may be of the view this is good for Britain,(but he probably means only the City of London) becase as yet his Coaliation Government have spectacularly failed to tidy up the banking and insurance mess. Put bluntly it is still SERIOUSLY CORRUPT!

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