Greek hopes dashed as EU leaders reject austerity package

Eurozone finance ministers have rejected a reported €3.3bn package of Greek budget cuts, dashing hopes the country will secure more bailout cash and avoid default.

The Greek finance minister has returned to Athens with a fresh set of demands and an urgent deadline, the FT reports. Greece’s creditors are demanding €325m in further cuts to this year’s budget, parliamentary approval of a sweeping reform package, and a pledge from the country’s political leaders they will maintain their commitment after April elections. Through the loan package and bond swap, Greece’s lenders are trying to lower the country’s debt-to-GDP ratio to 120 per cent by 2020.  ECB president Mario Draghi said at a news conference yesterday that Greek Prime Minister Lucas Pap...