Greek leaders to thrash out deal on second bailout

Guardian
February 7, 2012

Greece's political leaders are to meet on Tuesday night to consider a draft agreement that could finally pave the way to the country's second bailout, worth €130bn (£108bn).

Talks between Lucas Papademos, Greece's technocratic prime minister, and the heads of the three largest political parties are scheduled to begin at 9pm local time (7pm GMT). If agreement is reached, the full Greek cabinet could endorse the agreement on Wednesday.

News that a draft agreement was on the table sent the euro rallying to its highest level against the US dollar in eight weeks. On Monday, Greece disappointed the City by missing a deadline to tell the EU whether it accepted the austerity measures demanded by its international lenders in return for the €130bn package of aid.

Those austerity measures are deeply unpopular in Greece, where union leaders organised a general strike on Tuesday. Transport links, government offices and schools were all disrupted.

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