June 23, 2011
European leaders meet tonight to thrash out a pledge to come to the rescue of Greece for the second time in 15 months.
The Brussels summit of EU heads of government was scheduled to focus on the European economy, immigration policy and upheavals in the Middle East, but has been overshadowed by the sovereign debt crisis in Greece, which is perceived to be on the brink of a meltdown that might even trigger a renewed international banking crisis.
As Washington and the International Monetary Fund pile the pressure on EU leaders to deal decisively with the Greek emergency, the summit is expected to deliver a statement guaranteeing a second bailout later this year, worth up to €120bn, provided that the embattled government in Athens can meet its side of the bargain – secure parliamentary passage by next week of a draconian austerity package comprising €50bn worth of privatisations and €28bn of spending cuts and tax increases.
To try to ease Greece's plight, José Manuel Barroso, the European Commission president, will go the summit pleading with EU governments to agree to fast-track around €1bn from the EU budget to Greece for poverty and unemployment relief.
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