Obama, Sarkozy Approve of Greek Debt Rescue Plan

Posted July 24th, 2011 at 2:05 am (UTC-5)
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U.S. President Barack Obama and French President Nicolas Sarkozy have agreed the new Greek debt rescue plan will help ensure stability of the common European currency.

The White House says the two leaders spoke by phone Saturday on the Greek plan, which was adopted Thursday at a meeting of European leaders in Brussels.

A statement says Mr. Obama and Mr. Sarkozy reviewed the results of the meeting and agreed that key steps had been taken to ensure stability of the euro, and to sustain the economic recovery in Europe.

At the meeting Thursday, the European Union and International Monetary Fund said they will give Greece a second bailout worth about $155 billion. Greece will also get voluntary loans from the private sector to help cover the financial gap.

Officials from Europe's 17 nations that use the euro met in Brussels. EU President Herman van Rompuy and European Commission President Jose Manuel Barroso said participants unanimously supported a package they called a Marshall Plan for Greece to ensure the sustainability of its huge debt, and prevent the crisis from spreading.

Greece has imposed a set of austerity measures, including tax hikes and budgetary cuts, that have sparked violent protests.

In the past year, Greece — and later, Ireland and Portugal — were forced to secure international financial assistance from their European neighbors and the International Monetary Fund.

But Greece, even after adopting the austerity measures, said it needs another bailout of about the same size as last year's $156 billion figure.