Athens contorts for €130 billion carrot

Greece faces further hurdles and delays before it can receive a second €130 billion bailout, in spite of its politicians voting through more austerity measures in the face of violent protests.

The EU’s Economic Affairs Commissioner Olli Rehn yesterday called the Greek parliament’s approval of a further round of budget cuts a “crucial step forward”, but Germany insisted it would still take some time before the second bailout is delivered.

Germany, which as Europe’s biggest economy pays the largest part in bailout deals, said it would not give its final approval for the new aid payments until early March — after it becomes clear how many banks and investment funds are willing to take losses on their Greek bonds and the parliament in Berlin votes on the new measures.