Tuesday, January 3, 2012

Greece warns on euro exit if bailout not signed

BBC News
January 3, 2012

Greece may have to leave the eurozone if it fails to secure its latest bailout from the EU, IMF and banks, a government spokesperson has warned.

"The bailout agreement needs to be signed otherwise we will be out of the markets, out of the euro," spokesman Pantelis Kapsis told Skai TV.

The government is struggling with public opposition to new austerity measures, demanded by lenders.

Analysts suggest the warning is designed to win support for the moves.

EU visit

The Greek Prime Minister, former central banker Lucas Papdemos, is due to address the nation in the next few days to try to win support for new spending cuts and structural reforms.

The latest 130bn-euro bailout ($169.5bn, £108.7bn) was agreed in principle by EU leaders in October, conditional on Greece adopting further measures to cut its deficit and restructure its economy.

EU, International Monetary Fund and European Central Bank inspectors are due in Athens later in January to review progress.

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