Greek Deal Greeted With Relief Outside Euro Zone

Wall Street Journal
February 21, 2012

A €130 billion rescue package for Greece agreed early Tuesday has demonstrated that euro-zone governments are prepared to stand behind their currency, finance officials from European Union nations that don’t use the currency said.

Uncertainty swirling about Greece’s ability to avoid a disorderly default on its debts and the related financial difficulties experienced by other euro-zone nations has weakened economies outside the currency area.

But the relief felt by policy makers, both inside and outside the euro zone, has been tempered by the realization that Greece still faces a very difficult future, and may yet fail to deliver on the policies it has pledged to its creditors.

EU officials’ initial reaction to the rescue package was upbeat, however.

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