Greek Debt Crisis

Eurozone Approves Greek Aid Package

The leaders of Europe’s Eurozone countries have approved a support package for Greece worth €110 billion ($145 billion) in an effort to prevent the country’s debt crisis from spreading to other countries using the euro.

Following a summit meeting of heads of state on Friday night, European Union president Herman van Rompuy said that the emergency aid to Greece would also be available to other Eurozone countries affected by the crisis. The unpredented level of financial support is intended to reassure markets that Greece will not default on its debt.

Details of a new Stabilisation Mechanism will be unveiled at a special meeting of all EU finance ministers on Sunday.

“We will do whatever is needed to defend the euro,” said European Commission president Jose Manuel Barroso.

The moves come after a day of record losses on the world’s stock exchanges. Swedish markets dropped by more than 10 per cent during the last week, erasing all the gains made since last years financial crisis.

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