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| Greece woes overshadow EU summit | Greece woes overshadow EU summit |
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| The question of how to contain Greece's debt problems and ease pressure on the euro will weigh heavily on EU leaders when they meet in Brussels later. | The question of how to contain Greece's debt problems and ease pressure on the euro will weigh heavily on EU leaders when they meet in Brussels later. |
| The 27 leaders are under pressure to give a clear signal to financial markets that Greece's budget crisis will not destabilise the euro. | The 27 leaders are under pressure to give a clear signal to financial markets that Greece's budget crisis will not destabilise the euro. |
| France and Germany are reported to be working jointly on a political declaration of support for Greece. | France and Germany are reported to be working jointly on a political declaration of support for Greece. |
| It is the first big test for European Council President Herman Van Rompuy. | It is the first big test for European Council President Herman Van Rompuy. |
| He 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. | He 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 16-nation eurozone from collectively bailing out Greece, but bilateral help might be forthcoming. | EU rules prevent the 16-nation eurozone from collectively bailing out Greece, but bilateral help might be forthcoming. |
| The specifics of any EU aid are not expected before Monday, when eurozone finance ministers meet. | The specifics of any EU aid are not expected before Monday, when eurozone finance ministers meet. |
| The summit's other main agenda items are climate change and help for earthquake-devastated Haiti. | The summit's other main agenda items are climate change and help for earthquake-devastated Haiti. |
| Eurozone contagion fears | Eurozone contagion fears |
| German officials were quoted as saying there was no urgent need for a bail-out Gavin HewittBBC Europe editor Read more in Gavin's blog Send us your comments | German officials were quoted as saying there was no urgent need for a bail-out Gavin HewittBBC Europe editor Read more in Gavin's blog Send us your comments |
| 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. |
| 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. |
| 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 href="/2/hi/programmes/from_our_own_correspondent/8509244.stm">Greeks' aversion to taxes class="" href="/2/hi/business/8510386.stm">Jobless rate in Greece hits 10% | |
| 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. |
| After talks with French President Nicolas Sarkozy in Paris on Wednesday, Greek Prime Minister George Papandreou said his government would do whatever it took to cut its deficit. | After talks with French President Nicolas Sarkozy in Paris on Wednesday, Greek Prime Minister George Papandreou said his government would do whatever it took to cut its deficit. |
| "We have not asked for help," he said. "We have said that we just want you to support our own will, our country's credibility in implementing this programme." | "We have not asked for help," he said. "We have said that we just want you to support our own will, our country's credibility in implementing this programme." |
| Secluded setting | Secluded setting |
| Mr Van Rompuy has chosen a quiet old wood-panelled library, Bibliotheque Solvay, as the secluded setting for his first summit as EU president. It is just a short walk from the usual EU venue - the modern Justus Lipsius building, which houses hundreds of journalists and delegation officials. | Mr Van Rompuy has chosen a quiet old wood-panelled library, Bibliotheque Solvay, as the secluded setting for his first summit as EU president. It is just a short walk from the usual EU venue - the modern Justus Lipsius building, which houses hundreds of journalists and delegation officials. |
| Greece is not even mentioned in Mr Van Rompuy's invitation letter to the EU leaders, but correspondents say it is bound to figure prominently in the day-long discussions. | Greece is not even mentioned in Mr Van Rompuy's invitation letter to the EU leaders, but correspondents say it is bound to figure prominently in the day-long discussions. |
| 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 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 hurt European exports and even trigger a rapid decline in the euro's value, if international investors took fright and tried to shift their assets into other currencies, our correspondent says. | The risk is that the contagion could hurt European exports and even trigger a rapid decline in the euro's value, if international investors took fright and tried to shift their assets into other currencies, our correspondent 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. |
| Mr Van Rompuy's priorities on climate change include "changing the dynamics of the negotiating process", to put the EU back in the driving seat after the disappointment of Copenhagen in December. | Mr Van Rompuy's priorities on climate change include "changing the dynamics of the negotiating process", to put the EU back in the driving seat after the disappointment of Copenhagen in December. |
| In Copenhagen the EU failed to get binding global targets on greenhouse gas emissions, in what was widely seen as a big diplomatic setback. | In Copenhagen the EU failed to get binding global targets on greenhouse gas emissions, in what was widely seen as a big diplomatic setback. |
| 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 |