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Merkel Agrees to Bail Out Greece

Angela Merkel agrees on Greece rescue package – but wants new euro rules

• EU summit pledges loan and IMF aid package
• German leader pushes for tougher currency regime

Germany's chancellor, Angela Merkel, agreed for the first time yesterday on a "last-resort" rescue package for debt-stricken Greece, while pushing for a tough new regime of sanctions and penalties against European single currency countries whose fiscal misconduct endangers the euro.

Prodded by Merkel and the French president, Nicolas Sarkozy, the 16 countries using the single currency agreed a mixture of bilateral European loans and International Monetary Fund help for Greece if it finds itself facing default, unable to refinance its ballooning debt.

http://www.guardian.co.uk/business/2010/mar/25/angela-merkel-greece-package

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