Greek bail-out: A pillar in peril

Major analysis feature. From the day it was agreed in July 2011, the €109bn bail-out of Greece – the second international package in 15 months – appeared star-crossed. It was by far the most complicated rescue of a eurozone country to date, and even finance ministry officials who signed up to it had a hard time explaining what exactly they had agreed to.

By September 2011 almost every part of the new package – as well as the previous €110bn bail-out, agreed in May 2010 – is on the verge of collapsing. The Greek economy is in a tailspin, bondholders are in revolt, and voters in Europe’s creditor countries are increasingly calling on their leaders to cut Athens loose.

ESO: Background information: German court upholds eurozone rescue / Merkel promises ‘euro will not fail’ http://www.europeansources.info/record/german-court-upholds-eurozone-rescue-merkel-promises-euro-will-not-fail/

ESO: Background information: German Finance Minister Prepares for Possible Greek Bankruptcy http://www.europeansources.info/record/german-finance-minister-prepares-for-possible-greek-bankruptcy/

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