France approves 16.8 billion euros bailout for Greece by Zuzana Zelenakova

The French parliament approved Tuesday 16.8 billion euros bailout package for Greece. The sum represents France´s share of the rescue package by Eurozone that totals 110 billion euros. The aim of the financial aid is to prevent Athens from defaulting on the massive national debt. There are worries that the crisis in Greece could bring down other European countries with weaker finances. As a part of the deal Greece pledged to cut spending and raise taxes. The bailout money will be delivered to Greece over the next three years, with the first portion being released in the following weeks. 80 billion will be paid by the Eurozone members and the rest by the International ! Monetary Fund. Both the ruling right-wing party and the opposition in France backed the plan, which is considered to be the last chance for saving Greece from bankruptcy. Left-wing deputies, including the Communists, were against the measure. The Senate will vote about the bailout later this week. Originally, France was supposed to pay about 6.3 billion euros of the bailout. Now, with 16.8 billion euros to release France has become the country paying the second largest portion of the rescue package right after Germany which is providing 22.4 billion euros. Germany was the most reluctant member of the Eurozone to support to the financial aid plan. There has been also a significant public opposition in the country, however, Germany recognized that it would be in its own interest. The matter was resolved with Chancellor Angela Merkel saying that the bailout is "the only way to ensure the stability of the euro". "The reason for this law is a last resort - an emergency situation! - in that Greece in effect no longer had access to the financ! ial mark ets, and there was an impact on the stability of the euro," she told at a press conference.

related story (sgx17189): http://www.france24.com/en/20100504-france-approval-greece-r...

by Zuzana Zelenakova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.