Europe's bailout: Is Greece out of the woods?

Eurozone countries approve a $155 billion Greek rescue package — but it may not fix the continent's spiralling debt crisis

Greek temple
(Image credit: REUTERS/Yannis Behrakis)

At an emergency summit on Thursday, European leaders agreed to a new bailout package for Greece worth $155 billion. For the first time, private banks also pledged to help by giving the cash-strapped country easier repayment terms. Not only will this give Greece the money it needs to proceed with its recovery program, says Prime Minister George Papandreou, "but it will also mean the lightening of the burden on the Greek people." Does this mean Greece is no longer in danger of financial collapse?

The rescue gives Greece some breathing room: This is no cure-all, says Nicholas Hastings at The Wall Street Journal, but "there is little doubt that EU leaders have removed the immediate risk of debtor default that has been haunting the market for so long." The relief was clear across the world, with stock markets rallying and the euro rising by 2 percent against the dollar. It will take months to see how much this really helps, but everyone seems eager to give the deal "the benefit of the doubt."

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