22/Oct/2014 - Last News Update: 22:58

Franco-German deal reached over Greece's debts

Category: Business

Published: 25th Mar 2010 17:18:41

France and Germany have reached a deal on a financing plan to help debt-laden Greece, which will include IMF help.

Officials in Brussels say the package - yet to be agreed by other eurozone states - will total 23bn euros (£21bn).

The French presidency said there would be "very precise conditions" under which the 16 eurozone countries "could be led to intervene" to help Greece.

Co-ordinated bilateral loans and IMF loans are envisaged. EU leaders are now poised to discuss the plan.

News of the deal broke as leaders of the 27 EU member states gathered for a two-day summit in Brussels.

Diplomats say the eurozone leaders may hold an additional meeting on Thursday evening to discuss how to help Greece.

So far the eurozone has avoided seeking an IMF loan for Greece, preferring a European solution and anxious to maintain global confidence in the euro.

Revision of rules?

Earlier on Thursday Germany's Chancellor Angela Merkel said the German government "will press for emergency aid combining IMF and joint bilateral aid from the eurozone but... only as a last resort".

She has signalled reluctance to offer Greece anything resembling a bail-out, which is not allowed under the single currency rules.

She said Greece was not insolvent, was acting to curb its deficit and was still able to raise money on international markets.

She also said she would press for the EU to amend its treaties to strengthen its ability to prevent future budget crises.

Stressing the need to learn lessons from the crisis, she wants a treaty change to allow sanctions to come into force should a eurozone country ever default on its debts.

Arriving at the summit, Greek Prime Minister George Papandreou urged EU leaders to act to stabilise the euro.

The euro hit a 10-month low against the dollar on Wednesday after a credit downgrade for Portugal, which is also struggling with heavy debts.

BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2010. Franco-German deal reached over Greece's debts [Online] (Updated 25th Mar 2010)
Available at: http://www.ukwirednews.com/news/47262/Franco-German-deal-reached-over-Greeces-debts [Accessed 22nd Oct 2014]

News In Other Categories

  • Microsoft ditching the Nokia name on smartphones

    Microsoft is ditching the Nokia brand name from new devices, less than a year after acquiring the Finnish mobile firm.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Still Game live show marks TV return

    The cast of popular BBC comedy show Still Game are to return to TV screens next month with an hour-long version of their record-breaking live show.
  • West Indies collapsed tour of India must spark change - Ian Bishop

    West Indies cricket must treat the collapse of their tour of India as a "wake-up call", according to their former fast bowler Ian Bishop.
  • Stafford Borough Council leader quizzed by police

    The Conservative leader of Stafford Borough Council has been interviewed by police after failing to officially declare his role in three businesses.
  • WHO revises global tuberculosis estimate up by 500,000

    The World Health Organization has revised up its estimate of how many people have tuberculosis by almost 500,000.