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Eurozone Greek bailout talks begin in Brussels Eurozone Greek bailout talks begin in Brussels
(40 minutes later)
Eurozone finance ministers have begun talks in Brussels aimed at securing a second vital bailout for Greece. Eurozone finance ministers are holding talks in Brussels aimed at securing a second vital bailout for Greece.
They have said they are hopeful of reaching a deal, with France's Finance Minister Francois Baroin saying all of the elements are in place. They have said they are hopeful of reaching a deal, with France's Finance Minister Francois Baroin saying all the elements are in place.
But his Greek counterpart Evangelis Venizelos said haggling would go on "until the very last minute".But his Greek counterpart Evangelis Venizelos said haggling would go on "until the very last minute".
Athens needs the 130bn euros (£110bn; $170bn) in order to avoid bankruptcy next month, when loans must be repaid.Athens needs the 130bn euros (£110bn; $170bn) in order to avoid bankruptcy next month, when loans must be repaid.
Greek ministers and European officials vividly describe the catastrophe if Greece defaults. "If there is a default," said the German centre-right MEP Elmar Brok, "then there would be no pensions, no salaries at all. It would become a failed state."Greek ministers and European officials vividly describe the catastrophe if Greece defaults. "If there is a default," said the German centre-right MEP Elmar Brok, "then there would be no pensions, no salaries at all. It would become a failed state."
No-one pretends that default would be an easy option. There would be a run on the banks and, at the most elemental level, there would be the question of how soon a new drachma could be printed and distributed.No-one pretends that default would be an easy option. There would be a run on the banks and, at the most elemental level, there would be the question of how soon a new drachma could be printed and distributed.
But those who oppose the new bailout package argue that Greece is not being saved from the fate of a failed state, but being pushed into one - and for years to come.But those who oppose the new bailout package argue that Greece is not being saved from the fate of a failed state, but being pushed into one - and for years to come.
The rescue plan would also write off 100bn euros of debt, with private lenders accepting a 70% reduction in what Greece owes them.The rescue plan would also write off 100bn euros of debt, with private lenders accepting a 70% reduction in what Greece owes them.
In return, they would receive cash and new bonds, expected to mature in 30 years' time.In return, they would receive cash and new bonds, expected to mature in 30 years' time.
It is the second time Greece has sought a bailout from international lenders.It is the second time Greece has sought a bailout from international lenders.
Jean-Claude Juncker - prime minister of Luxembourg and chairman of the eurozone finance ministers group - said Greece had fulfilled many of the conditions asked of it and he was hopeful the talks would be "the final consultations".Jean-Claude Juncker - prime minister of Luxembourg and chairman of the eurozone finance ministers group - said Greece had fulfilled many of the conditions asked of it and he was hopeful the talks would be "the final consultations".
"I am of the opinion that today we have to deliver, because we don't have any more time," he said."I am of the opinion that today we have to deliver, because we don't have any more time," he said.
German Finance Minister Wolfgang Schaeuble also said he was "optimistic" a deal would be reached, while Mr Baroin said he would plead for the deal.German Finance Minister Wolfgang Schaeuble also said he was "optimistic" a deal would be reached, while Mr Baroin said he would plead for the deal.
"All the elements are in place... both with the bankers, private sector creditors, and public sector creditors, the states and central banks," he told Europe 1 radio."All the elements are in place... both with the bankers, private sector creditors, and public sector creditors, the states and central banks," he told Europe 1 radio.
But as the talks began, it emerged that Dutch Finance Minister Jan Kees De Jager was pushing for the EU, International Monetary Fund (IMF) and European Central Bank (ECB) to take "permanent" control of Greece's revenues and public expenditure, AFP news agency reports. But as the talks began, Dutch Finance Minister Jan Kees De Jager said he would like to see "some kind of permanent presence" by the EU, International Monetary Fund (IMF) and European Central Bank (ECB) over Greece's revenues and public expenditure.
"When you look at the derailments in Greece which have occurred several times now, it is probably necessary," he said.
Elections aheadElections ahead
Mr Venizelos said he now expected the "long period of uncertainty" to end.
"The Greek people send to Europe the message that they have made, and will make, the necessary sacrifices for our country to regain its position of equality within the European family," he said in a finance ministry statement issued in Brussels on Monday.
After five straight years of recession, Greece now has a debt greater than 160% of its Gross Domestic Product (GDP).After five straight years of recession, Greece now has a debt greater than 160% of its Gross Domestic Product (GDP).
Eurozone leaders and the IMF said in October that Greek debt should be reduced to the more sustainable level of 120% of GDP by 2020.Eurozone leaders and the IMF said in October that Greek debt should be reduced to the more sustainable level of 120% of GDP by 2020.
Successive rounds of austerity measures, demanded by the EU, the IMF and the European Central Bank - Greece's international creditors - have failed to restore growth and have provoked clashes between protesters and police.Successive rounds of austerity measures, demanded by the EU, the IMF and the European Central Bank - Greece's international creditors - have failed to restore growth and have provoked clashes between protesters and police.
The Greek government fell last year after ex-Prime Minister George Papandreou called for a referendum on the eurozone rescue package.The Greek government fell last year after ex-Prime Minister George Papandreou called for a referendum on the eurozone rescue package.
He was replaced by Mr Papademos, an unelected technocrat who is expected to lead Greece until parliamentary elections in April.He was replaced by Mr Papademos, an unelected technocrat who is expected to lead Greece until parliamentary elections in April.
Measures passed by parliament last week set out 3.3bn euros' worth of cuts to salaries and pensions, and health and defence spending.Measures passed by parliament last week set out 3.3bn euros' worth of cuts to salaries and pensions, and health and defence spending.
Several thousand people protested in Athens on Sunday against further cuts agreed to by Mr Papademos' cabinet on Saturday - but the numbers were far reduced from the tens of thousands who protested last week.Several thousand people protested in Athens on Sunday against further cuts agreed to by Mr Papademos' cabinet on Saturday - but the numbers were far reduced from the tens of thousands who protested last week.
IMF chief Christine Lagarde praised the work Greece had done so far to address the crisis, but said it was now up to the other parties to continue the work, and that the IMF was ready to work with them. Mr Venizelos has said he now expects the "long period of uncertainty" to end.
"The Greek people send to Europe the message that they have made, and will make, the necessary sacrifices for our country to regain its position of equality within the European family," he said in a finance ministry statement issued in Brussels on Monday.
IMF chief Christine Lagarde praised the work Greece had done so far and said the IMF was ready to work with them.
US Treasury Secretary Timothy Geithner said the US was encouraging the IMF to support the bailout, but it is not clear how much the IMF will contribute.US Treasury Secretary Timothy Geithner said the US was encouraging the IMF to support the bailout, but it is not clear how much the IMF will contribute.
Some eurozone finance ministers doubt Greece's commitment to its spending pledges and want strong mechanisms to ensure its debts are paid.Some eurozone finance ministers doubt Greece's commitment to its spending pledges and want strong mechanisms to ensure its debts are paid.
It is not yet clear how the eurozone intends to keep the pressure on Greece to ensure it fulfils its commitments, says the BBC's Europe editor, Gavin Hewitt.It is not yet clear how the eurozone intends to keep the pressure on Greece to ensure it fulfils its commitments, says the BBC's Europe editor, Gavin Hewitt.
And, he adds, there are doubts that even with the bailout Greece will be able to reduce its debt to a sustainable level.And, he adds, there are doubts that even with the bailout Greece will be able to reduce its debt to a sustainable level.
Funds from elsewhere may need to be found. A first rescue fund of 110bn euros in 2010 was not enough to avert the crisis.Funds from elsewhere may need to be found. A first rescue fund of 110bn euros in 2010 was not enough to avert the crisis.
Are you in Greece or another of the eurozone countries? What is your reaction to the possibility of a new bailout loan? You can send your comments to the BBC using the form below:Are you in Greece or another of the eurozone countries? What is your reaction to the possibility of a new bailout loan? You can send your comments to the BBC using the form below: