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Recommend David Gow - Greece Gets Ultimatum: Accept Austerity Plan or Forego Extra Bailout Cash (Email)

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Published on Wednesday, November 2, 2011 by The Guardian/UK

http://www.guardian.co.uk/world/2011/nov/02/greece-ultimatum-austerity-forego-eu

by David Gow in Athens

Greece has been given an ultimatum that it will get no more money from the European Union and International Monetary Fund until its people have voted to accept the austerity measures demanded by the bailout package.

The latest tranche of bailout aid, worth €8bn (£7bn) and agreed just two weeks ago, is seen as vital for ensuring that Greek public sector workers can continue to be paid. But it will now be delayed until after the country decides in a referendum whether it accepts the new rescue package or even wants to stay in the euro.

The threat to send Greece closer to bankruptcy emerged on the margins of the G20 summit in Cannes – due to start on Thursday – and follows a blunt warning from Jean-Claude Juncker, chairman of the eurogroup, that the sixth tranche of the original €110bn bailout was now in jeopardy.


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