Eurozone agrees £95bn Greek bail-out

Greece has agreed to make major austerity cuts in return for a huge 100bn euro bail-out from the eurozone and the IMF.

The three-year deal is designed to prevent Greece defaulting on its massive debt and contaminating the rest of Europe. Angela Merkel, the German Chancellor, said the deal was the only way to save the euro and she hoped it would encourage other countries not to get in the same situation as Greece. However, there is still a struggle ahead for Greece as its economy is still deep in recession. Over the weekend, the Government forecast GDP would drop 4% in 2010. It also warned its national debt, which is currently at around 115% of GDP, would rise to 149% of 2013 before falling. The aus...