The Greek government has stated that a joint bailout deal between the International Monetary Fund and the European Union (EU) is the only way to save the country from bankruptcy.

Prime Minister George Papandreou is pushing for a bill implementing the deal to be passed, which will hopefully contain Greece’s debt problems and stop similar financial difficulties spreading to other EU countries. Speaking before the vote on the bill in parliament, Mr Papandreou has said:

“Today things are simple. Either we vote and implement the deal, or we condemn Greece to bankruptcy,”

If implemented, the rescue package will help to contain Greece’s debt crisis and save countries such as Spain and Portugal from the same financial ruin. Before taking money from the rescue deal, however, the government has to first show they are taking decisive action to stabilise the Greek economy by adhering to a three-year austerity scheme. The government’s Finance Minister, George Papaconstantinou, has said:

“We are asking for loans from countries that also have deficits and from countries that are also the subject of speculative attacks. And for those to be granted, we must persuade them that we are putting our house in order,”

There have been a series of highly publicised and controversial spending cuts in areas such as salaries and pensions, as well as a rise in taxes. These have been met with outrage on behalf of the Greek people, and three people have so far died during demonstrations and protests in Athens that soon turned violent.

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