EU leaders put pressure on Greeks over austerity plans

GREECE’S government and opposition parties came under intense pressure from their EU colleagues to adopt and work through a new austerity package at last night’s summit in Brussels.

Taoiseach Enda Kenny admitted that he was unlikely to get a deal on cutting Ireland’s bailout interest rate but said that next Tuesday’s vote by the Greek parliament was “absolutely crucial to the future of Europe”.

European Central Bank chief Jean-Claude Trichet warned the risks from the Greek crisis may be “approaching colour code red”. He said problems with Greek finances could overflow and result in major losses among banks that hold Greek debt.