Euro zone leaders to discuss Greece rescue plan

The 16 leaders of the euro zone meet in Brussels today to finalise the Greek rescue plan and assess how such financial crises can be avoided in the future.

In Berlin, Germany’s parliament will vote on its contribution to the loan package.

Greek politicians approved drastic austerity cuts yesterday needed to secure international rescue loans worth €110bn.

Clashes briefly erupted in Athens in the streets outside parliament, forcing police to use tear gas.

In New York, the Dow Jones industrials plunged 1,000 points in less than half an hour on fears that Greece’s debt problems could halt the global economic recovery. The Dow managed to recover two-thirds of its losses and close down 347 at 10,520.

The euro-zone nations have pledged to contribute €80bn to the bailout plan for Greece over the next three years with the rest coming from the International Monetary Fund.

The 16 nations have pledged to make haste with the national approval of the funds and rescue package, hoping to have it finished for Friday’s emergency summit. Major nations like Germany, France, Italy are likely to have concluded the process by then.

Germany, long Greece’s toughest critic, was debating legislation that would provide the go-ahead to €22.4bn in credit that Berlin wants to grant Athens.

It already passed the lower house’s budget committee – a day before today’s vote by the full house.

The coalition led by Chancellor Angela Merkel has a comfortable majority in parliament and could pass the law without opposition help. Nonetheless, Finance Minister Wolfgang Schaeuble asked the opposition for support.

Yesterday’s clashes in Athens came a day after violent protests left three people dead after a bank was firebombed in Athens.