European Nations To Bail Out Greece

European Nations To Bail Out Greece

POSTED: Monday, February 15, 2010 - 3:37pm

UPDATED: Wednesday, February 17, 2010 - 2:26pm

BRUSSELS (AP) - European finance ministers bluntly told Greece
on Monday to prepare even tougher spending cuts and new taxes,
including a tax on luxury goods and cars, to fix its debt crisis.

The 16 countries that use the euro warn that Greece will need to
take the extra measures if current cutbacks don't bring its massive
deficit down from 12.7 percent of economic output to 8.7 percent
this year.

Greece has until March 16 to report back on its progress.

Eurozone nations have pledged to help Greece if it can't repay
its debts - but want Greece to make big spending cuts first. They
are taking action because fears of a Greek default have threatened
to spark a wider European debt crisis, undermining the euro and
leading to serious questioning of the rules underpinning the shared
currency.

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