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EU's Barroso says confident Greece will contain crisis
AFP - Friday, April 30
ATHENS (AFP) - – European Commission President Jose Manuel Barroso said Friday he was confident Greece's debt crisis could be contained, a day after Athens police battled protesters objecting to austerity plans.
Greece is in negotiations with the European Union and the International Monetary Fund on a financial bailout that its government says is desperately needed by May 19 in order to avoid a devastating debt default.
"I'm confident that the talks will be concluded soon, meaning in the next days," Barroso told a press conference at the end of a visit to Beijing.
"We believe that these solutions will be conducive to our actions and will prevent further possible effects of the contagion."
The EU and Greek authorities are making "solid and rapid progress" to finalise an agreement on the bailout, he said.
"Greek authorities have stated in very clear terms that they will take all measures needed to correct fiscal imbalances," Barroso said.
A government source in Athens said Friday Greece, the EU and the IMF are "very close" to agreeing the austerity measures needed to secure the loans and a deal will be announced by Sunday.
"Negotiations are still going on but we are very close to an agreement," the source said, speaking on condition of anonymity,
"By Sunday it will be announced by the Greek government," the source added.
Greek Prime Minister George Papandreou on Thursday warned that Greece was in "a battle for survival."
The government would complete talks on getting tens of billions of euros from the EU and IMF "in coming days," he said.
"We will do whatever it takes to save the country," he added.
But the bailout is deeply unpopular in Greece because of the harsh conditions protesters say it will impose on ordinary people.
Greek police clashed with protesters Thursday as the troubled nation came under intense pressure to force through extra cuts in return for the giant bailout deal said to be just days away.
But after recent heavy falls, markets in Europe and the United States rallied at the news that the deal was close to being finalised. Related article: Europe debt crisis deepens
Police fired tear gas at hundreds of demonstrators trying to approach the finance ministry in Athens in protest at austerity cuts aimed at slashing Greece's budget deficit.
Further clashes erupted outside parliament, an AFP photographer said.
The country is bracing for a wave of strikes and work stoppages in the coming days, including a general strike on May 5.
The government has insisted it needs the money by May 19 in order to avoid a debt default which could be hugely damaging for the wider eurozone of which Greece is a member.
All eyes will be on Finance Minister George Papaconstantinou later Friday when he address an economics conference.
But the markets at least, appear to have been reassured at news that some kind of a bailout for Greece was imminent.
Asian stocks rallied on Friday at the end of a tough week and the news also lifted the euro from one-year lows against the dollar.
On Thursday, the European markets had responded well after the EU's commissioner for economic and monetary affairs, Olli Rehn, said the marathon talks with Greece were "about to conclude." Related article: Greek crisis borne of corruption, say experts
Fresh signs that Germany would back the deal had also helped global stocks and the euro stabilise.
That came after days of losses caused by the demotion of Greek debt to "junk" status and the downgrading of Portugal and Spain's credit ratings.
The European rally rippled across the Atlantic to the US markets, with the Dow Jones Industrial Average up 122.05 points (1.10 percent) to 11,167.32 by the close, before reaching Asian markets Friday.
Greece has asked the EU and IMF to activate a three-year rescue package worth 45 billion euros (60 billion dollars) this year alone as it faces a May 19 deadline to repay nine billion euros in maturing debts.
Germany has balked at leading Europe's rescue effort, with a bailout for Greece hugely unpopular ahead of a key regional election on May 9.
AFP - Friday, April 30
ATHENS (AFP) - – European Commission President Jose Manuel Barroso said Friday he was confident Greece's debt crisis could be contained, a day after Athens police battled protesters objecting to austerity plans.
Greece is in negotiations with the European Union and the International Monetary Fund on a financial bailout that its government says is desperately needed by May 19 in order to avoid a devastating debt default.
"I'm confident that the talks will be concluded soon, meaning in the next days," Barroso told a press conference at the end of a visit to Beijing.
"We believe that these solutions will be conducive to our actions and will prevent further possible effects of the contagion."
The EU and Greek authorities are making "solid and rapid progress" to finalise an agreement on the bailout, he said.
"Greek authorities have stated in very clear terms that they will take all measures needed to correct fiscal imbalances," Barroso said.
A government source in Athens said Friday Greece, the EU and the IMF are "very close" to agreeing the austerity measures needed to secure the loans and a deal will be announced by Sunday.
"Negotiations are still going on but we are very close to an agreement," the source said, speaking on condition of anonymity,
"By Sunday it will be announced by the Greek government," the source added.
Greek Prime Minister George Papandreou on Thursday warned that Greece was in "a battle for survival."
The government would complete talks on getting tens of billions of euros from the EU and IMF "in coming days," he said.
"We will do whatever it takes to save the country," he added.
But the bailout is deeply unpopular in Greece because of the harsh conditions protesters say it will impose on ordinary people.
Greek police clashed with protesters Thursday as the troubled nation came under intense pressure to force through extra cuts in return for the giant bailout deal said to be just days away.
But after recent heavy falls, markets in Europe and the United States rallied at the news that the deal was close to being finalised. Related article: Europe debt crisis deepens
Police fired tear gas at hundreds of demonstrators trying to approach the finance ministry in Athens in protest at austerity cuts aimed at slashing Greece's budget deficit.
Further clashes erupted outside parliament, an AFP photographer said.
The country is bracing for a wave of strikes and work stoppages in the coming days, including a general strike on May 5.
The government has insisted it needs the money by May 19 in order to avoid a debt default which could be hugely damaging for the wider eurozone of which Greece is a member.
All eyes will be on Finance Minister George Papaconstantinou later Friday when he address an economics conference.
But the markets at least, appear to have been reassured at news that some kind of a bailout for Greece was imminent.
Asian stocks rallied on Friday at the end of a tough week and the news also lifted the euro from one-year lows against the dollar.
On Thursday, the European markets had responded well after the EU's commissioner for economic and monetary affairs, Olli Rehn, said the marathon talks with Greece were "about to conclude." Related article: Greek crisis borne of corruption, say experts
Fresh signs that Germany would back the deal had also helped global stocks and the euro stabilise.
That came after days of losses caused by the demotion of Greek debt to "junk" status and the downgrading of Portugal and Spain's credit ratings.
The European rally rippled across the Atlantic to the US markets, with the Dow Jones Industrial Average up 122.05 points (1.10 percent) to 11,167.32 by the close, before reaching Asian markets Friday.
Greece has asked the EU and IMF to activate a three-year rescue package worth 45 billion euros (60 billion dollars) this year alone as it faces a May 19 deadline to repay nine billion euros in maturing debts.
Germany has balked at leading Europe's rescue effort, with a bailout for Greece hugely unpopular ahead of a key regional election on May 9.
