EUROPEAN markets fell yesterday as a deal on Greek debt unravelled, raising the possibility that the debt-ridden country could imminently default and leave the euro.
An agreement between Greek politicians on a series of cuts that took weeks to negotiate was dashed within hours as European finance ministers demanded even more austerity before releasing the next tranche of bail-out funds.
But with scenes of rioting in Athens and cabinet members resigning in protest at the humiliating terms demanded by the EU, it is far from certain that the Greek parliament will vote through even the original cuts this weekend.GREEKS RIOT AS EUROZONE REJECTS £2.5BN CUTS PLAN:
ATHENS exploded into violence yesterday as the Greek people reacted furiously to the rejection of the country’s austerity plans by eurozone finance ministers.
Greek political leaders had agreed a deal including £2.5billion cuts but Brussels said it was not enough.
Riots raged through the capital while mass demonstrations gripped Greece’s next biggest city, Thessaloniki.
Some 20,000 protesters gathered in Syntagma Square, outside the parliament in Athens, during a general strike. Hooded youths hurled firebombs and stones at police, who responded with tear gas.
The turmoil hit global markets with the FTSE 100 in London down 43.08 points at 5852.39. Greece now has less than a week to meet three conditions in return for £107billion in aid to stave off bankruptcy.
The other eurozone countries have demanded Greece finds another £300million in savings, passes its cuts package in parliament and secures written guarantees the plans will be implemented even after a new government is elected in April.WB Yeats; (excerpt from The Second Coming):
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.
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