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EU, IMF Aid Package for Greece Agreed Upon

   Greek  PM  Papandreou  says  package  necessary  for  Greece  to avoid
   bankruptcy, country must be willing to make major sacrifices

   VOA News 02 May 2010
   A  protester  shouts  slogans during a demonstration in the Greek port
   city of Thessaloniki, 1 May 2010

Photo: AP

   A  protester  shouts  slogans during a demonstration in the Greek port
   city  of Thessaloniki, 1 May 2010. Thousands of protesters gathered in
   Thessaloniki  and  other  Greek  cities  Saturday  for May Day rallies
   fueled  by anger at expected harsh austerity measures needed to secure
   rescue loans.

   The  Greek prime minister says his government has reached an agreement
   with  the  European  Union  and  the  International Monetary Fund on a
   multi-billion-dollar financial bailout package.
   Prime  Minister George Papandreou said Sunday the package is necessary
   for  Greece  to  avoid  bankruptcy, and the country must be willing to
   make major sacrifices.
   Details  of  the  package,  said  to  be worth $160 billion, are to be
   announced later Sunday.
   The head of the European Commission, Jose Manuel Barroso, supports the
   emergency  aid  package  for  Greece.  President Barroso said the aid
   package  will be "decisive" in getting Greece's economy back on track,
   and will keep the crisis from further threatening the financial health
   of other EU nations.
   Thousands  of  protesters  rallied  in  Athens  Saturday  against  the
   government's plan to make deep budget cuts.
   Protesters struck police with sticks and threw fire bombs in the Greek
   capital  at the May Day rally.  Police fired tear gas to break up the
   crowds.
   Greece's  public sector union has been leading opposition to austerity
   measures  the  government  is  planning  as  part of the international
   economic rescue package.
   Mr.  Papandreou  has  told parliament that such austerity measures are
   necessary  to  ensure the nation's survival.  The government hopes to
   cut its budget deficit by some $32 billion.
   Union  officials  have expressed concern the measures will include tax
   increases and a wage freeze for government workers.  They have called
   for a general strike on May 5.
   Politicians  and  investors  are  worried that economic problems could
   spread  if Greece fails to pay back its debt.  Those concerns grew in
   the  past  week  when a key credit rating agency, Standard and Poor's,
   downgraded its credit ratings of Greece, Portugal and Spain.

   Some information for this report was provided by AP, AFP and Reuters.

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