EU leaders meet as Greek domino effect feared
Share
Herman Van Rompuy’s first summit as European Council President today will see 27 European leaders along with economic advisers, the central bank chief and other senior officials face one of the EU’s toughest tests to date – saving the euro.
Job creation, growth, climate change and Haiti were the main items on today’s agenda, but Greece’s economic woes are now set to top the program as fears over the future of the euro heighten.
The meeting is expected to bring messages and measures of support for Greece.
Last night, a French diplomatic source said that Germany and France were working together on a message of political support for their struggling Eurozone partner.
Spanish Prime Minister Jose Luis Rodriguez Zapatero, who currently holds the EU’s rotating presidency, has leant his support by saying: "We have to support Greece, that's clear, and it's Europe and the Eurogroup which will do it.
Zapatero’s statement confirms that EU leaders are not considering calling in the International Monetary Fund – a move that may damage the credibility of the euro.
EU rules forbid a collective bailout by the 16 other eurozone members but bilateral help is permitted. However, any monetary support is likely to come with strict conditions.
Greek workers have already taken to the streets to protest the tough austerity measures being introduced. The measures include a public sector salary freeze, a hike in petrol prices and raising the retirement age from 61 to 63.
Athens needs to borrow €53 billion this year to cover its deficit and refinance debts. It is feared that without eurozone help and strict austerity measures, the problem will spill into Spain and Portugal and eventually into the rest of the eurozone.
