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| EU deal 'agreed' on Greece debts | EU deal 'agreed' on Greece debts |
| (10 minutes later) | |
| EU leaders have reached a deal on helping Greece tackle its debt crisis, EU President Herman Van Rompuy says. | EU leaders have reached a deal on helping Greece tackle its debt crisis, EU President Herman Van Rompuy says. |
| He gave no further details, but all 27 EU leaders are now set to discuss it. | He gave no further details, but all 27 EU leaders are now set to discuss it. |
| German Chancellor Angela Merkel said Greece "will not be left on its own, but there are rules and these rules must be adhered to". | German Chancellor Angela Merkel said Greece "will not be left on its own, but there are rules and these rules must be adhered to". |
| It is an important signal to the markets that France and Germany are standing shoulder-to-shoulder with Greece, a BBC correspondent says. | It is an important signal to the markets that France and Germany are standing shoulder-to-shoulder with Greece, a BBC correspondent says. |
| Greece's debt crisis has put pressure on the euro, and it will dominate the EU summit now under way in Brussels. | Greece's debt crisis has put pressure on the euro, and it will dominate the EU summit now under way in Brussels. |
| There was an instant reaction on the markets, where traders welcomed news of the deal. Major European markets rebounded from earlier falls and the euro rose against the US dollar. | There was an instant reaction on the markets, where traders welcomed news of the deal. Major European markets rebounded from earlier falls and the euro rose against the US dollar. |
| Mr Van Rompuy, the new President of the European Council, said the 16 eurozone countries "will take determined and coordinated action if needed to safeguard stability in the eurozone as a whole". | Mr Van Rompuy, the new President of the European Council, said the 16 eurozone countries "will take determined and coordinated action if needed to safeguard stability in the eurozone as a whole". |
| The Greek people will be watching to see if they face additional austerity measures Gavin HewittBBC Europe editor Read more in Gavin's blog Send us your comments | The Greek people will be watching to see if they face additional austerity measures Gavin HewittBBC Europe editor Read more in Gavin's blog Send us your comments |
| He also stressed that Greece had not asked for financial aid, and added that the EU was expecting "rigorous" action from the Greek government. | He also stressed that Greece had not asked for financial aid, and added that the EU was expecting "rigorous" action from the Greek government. |
| The BBC's Dominic Hughes in Brussels says the details of the EU help for Greece may not emerge until Monday, when eurozone finance ministers will meet. | The BBC's Dominic Hughes in Brussels says the details of the EU help for Greece may not emerge until Monday, when eurozone finance ministers will meet. |
| It is the first big test for Mr Van Rompuy, who wanted the summit to focus on a new strategy for jobs and growth - a blueprint for the next 10 years. But defending the euro is now a more pressing issue. | It is the first big test for Mr Van Rompuy, who wanted the summit to focus on a new strategy for jobs and growth - a blueprint for the next 10 years. But defending the euro is now a more pressing issue. |
| EU rules prevent the eurozone from collectively bailing out Greece, but the debt crisis has forced EU leaders to seek ways to help nevertheless. | EU rules prevent the eurozone from collectively bailing out Greece, but the debt crisis has forced EU leaders to seek ways to help nevertheless. |
| Eurozone contagion fears | Eurozone contagion fears |
| The markets remain sceptical that Greece will be able to pay its debts. | The markets remain sceptical that Greece will be able to pay its debts. |
| Any EU budget support for Greece is likely to come with stringent conditions, to ensure that Athens fulfils its austerity plans and to reassure European voters that their taxes will not be diverted to propping up Greece. | Any EU budget support for Greece is likely to come with stringent conditions, to ensure that Athens fulfils its austerity plans and to reassure European voters that their taxes will not be diverted to propping up Greece. |
| Thursday's talks are all the more urgent coming just hours after a public sector strike brought many services to a standstill in Greece. | Thursday's talks are all the more urgent coming just hours after a public sector strike brought many services to a standstill in Greece. |
| GREEK AUSTERITY PLAN Cut budget deficit below EU ceiling of 3% of GDP by 2012, from 12.7% in 2009Freeze public sector salaries and cut bonusesReplace only one in five of people leaving civil serviceRaise retirement age by two years to 63, by 2015Raise taxes on fuel, tobacco, alcohol and property Q&A: Greece's economic woes Greeks' aversion to taxes Jobless rate in Greece hits 10% | GREEK AUSTERITY PLAN Cut budget deficit below EU ceiling of 3% of GDP by 2012, from 12.7% in 2009Freeze public sector salaries and cut bonusesReplace only one in five of people leaving civil serviceRaise retirement age by two years to 63, by 2015Raise taxes on fuel, tobacco, alcohol and property Q&A: Greece's economic woes Greeks' aversion to taxes Jobless rate in Greece hits 10% |
| The government's decision to freeze public sector salaries and raise the retirement age are among the austerity measures that have angered Greek trade unions. | The government's decision to freeze public sector salaries and raise the retirement age are among the austerity measures that have angered Greek trade unions. |
| Other eurozone countries with big deficits, such as Portugal and Spain, are seen as vulnerable if Greece's budget crisis is not tackled resolutely. | Other eurozone countries with big deficits, such as Portugal and Spain, are seen as vulnerable if Greece's budget crisis is not tackled resolutely. |
| Greece's deficit is, at 12.7%, more than four times higher than eurozone rules allow. For years Greek spending has ballooned while tax revenue has diminished. | Greece's deficit is, at 12.7%, more than four times higher than eurozone rules allow. For years Greek spending has ballooned while tax revenue has diminished. |
| Its debt is about 300bn euros ($419bn; £259bn), and the government estimates it will need to borrow about 53bn euros this year to cover budget shortfalls. | Its debt is about 300bn euros ($419bn; £259bn), and the government estimates it will need to borrow about 53bn euros this year to cover budget shortfalls. |
| Debt servicing is now costing Greece 11.6% of its gross domestic product and it has to pay more interest on loans now because its credit rating has been downgraded. | Debt servicing is now costing Greece 11.6% of its gross domestic product and it has to pay more interest on loans now because its credit rating has been downgraded. |
| Wary of IMF help | Wary of IMF help |
| Analysts say that powerful eurozone members such as Germany may be able to help by buying Greek government debt or by providing loan guarantees. | Analysts say that powerful eurozone members such as Germany may be able to help by buying Greek government debt or by providing loan guarantees. |
| In addition, the European Commission may decide to disburse regional aid to Greece earlier than planned. | In addition, the European Commission may decide to disburse regional aid to Greece earlier than planned. |
| But EU leaders appear reluctant to call on the International Monetary Fund to shore up the Greek economy. That would be a big blow to pride in the single currency. | But EU leaders appear reluctant to call on the International Monetary Fund to shore up the Greek economy. That would be a big blow to pride in the single currency. |
| Secluded setting | Secluded setting |
| Mr Van Rompuy chose a quiet old wood-panelled library, Bibliotheque Solvay, as the secluded setting for his first summit as EU president. He wanted a relaxed, informal meeting - not crisis talks. | |
| HAVE YOUR SAYWe owe our civilisation to Greece. Now in their hour of need, we should be there for themBradley, Carlisle, UK Send us your comments | HAVE YOUR SAYWe owe our civilisation to Greece. Now in their hour of need, we should be there for themBradley, Carlisle, UK Send us your comments |
| The BBC's economics correspondent Andrew Walker says a default by any of the high-deficit eurozone countries would hit banks in Europe which hold government debt. The risk is that the contagion could trigger a rapid decline in the euro's value, he says. | The BBC's economics correspondent Andrew Walker says a default by any of the high-deficit eurozone countries would hit banks in Europe which hold government debt. The risk is that the contagion could trigger a rapid decline in the euro's value, he says. |
| So far the decline of the euro has been substantial - about 9% since early December - but not disorderly, he says. | So far the decline of the euro has been substantial - about 9% since early December - but not disorderly, he says. |
| The European Commission is working on a blueprint for the EU's long-term recovery and growth, called Europe 2020, which is expected by early March. | The European Commission is working on a blueprint for the EU's long-term recovery and growth, called Europe 2020, which is expected by early March. |
| It will replace the Lisbon Strategy, launched in 2000, which became a victim of the global financial crisis and of fiscal rule-breaking by EU governments. | It will replace the Lisbon Strategy, launched in 2000, which became a victim of the global financial crisis and of fiscal rule-breaking by EU governments. |
| Mr Van Rompuy is reported to favour tighter EU co-ordination of economic policy and enhanced EU surveillance of member states' budgets. | Mr Van Rompuy is reported to favour tighter EU co-ordination of economic policy and enhanced EU surveillance of member states' budgets. |
| Are you in Greece or another EU country? How do you think the EU should deal with Greece's debt problems? Send us your comments using the form below. | Are you in Greece or another EU country? How do you think the EU should deal with Greece's debt problems? Send us your comments using the form below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |