Global markets await Greek debt deal

Date: Thursday 11 Feb 2010

Global markets have eased back after initial gains on news a deal has been agreed to help debt-stricken Greece.

European Union President Herman Van Rompuy told reporters that a deal has been agreed, but details still remain sketchy.

‘Euro-area member states will take determined and coordinated action if needed to safeguard financial stability in the euro area as a whole,’ Van Rompuy said.

The agreement came after talks between Van Rompuy, European Commission President Jose Manuel Barroso, French President Nicolas Sarkozy, German Chancellor Angela Merkel, European Central Bank President Jean-Claude Trichet and Greek Prime Minister George Papandreou.

An official statement is expected later today, though rumours are that the EU is unlikely to lay out any specific measures.

The euro zone’s debt problems have rocked global stock markets over the last month.

Greece started the rot late last year when it revealed that the country’s budget deficit would be more than twice as big as previously thought. The Greek budget deficit currently stands at 13%, with debt mounting to a staggering 110% of gross domestic product.

The European Union’s stability and growth pact rules states that all 16 member of the euro zone must limit their budget deficit to 3% of gross national product while public debt level must not exceed 60%.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE