The explosive issue of who will pay for a two-year extension to Greece's
deficit-reduction programme will confront eurozone finance ministers on
Tuesday.
Between 20 and 40 billion euros (pounds sterling 16 billion to pounds
sterling 32 billion) will be needed to fund Greece after the target date for
its cuts programme was put back to 2016. But it is unclear where the money
will come from.
The extension is seen as vital to keeping Greece in the single currency,
so markets will carefully scrutinise statements coming out of Tuesday's
meeting in Brussels.
"It is a burning question," said Dhaval Joshi, managing editor with
independent research group BCA. "And there is an even more vital issue, which
is that Greek debt is still unsustainable and needs another restructuring to
get it below 100 per cent of gross domestic product." It stands at 175 per
cent and is scheduled to fall to 120 per cent by 2020.
Raoul Ruparel of the campaign group Open Europe said: "There are big
political discussions about how to find the money."
The eurozone has been rocked by strikes and protests, with people in
Spain, Portugal, Greece and Italy opposing austerity measures.
