Friday, February 24, 2012

Greece To Get New €130B Bailout

The Flag of Greece emblazoned across the nation.
Greece was in trouble because it took on too much debt.
But other countries have agreed to help Greece by lending the country more than 130-billion euros. Euros (€) are the units of money used in 17 countries in Europe including Greece, France and Germany.
The countries that have agreed to bail Greece out of its money problems are demanding something in return. They are insisting that the government of Greece spend less.
For example, Greece must pay its workers less. It must also reduce the amount of money paid to workers once they retire.
These cuts to spending that will affect the people of Greece are called “austerity measures.”
If the plan goes ahead, the austerity measures will also reduce, or cut, the amount of money spent on health care and education. This will have an effect on hospitals and schools in Greece.
Spending on the military to defend the country will also be cut, along with special payments to families that have at least three children.
Many Greeks are not happy about the planned spending cuts which will add up to more than three billion euros. Thousands have been protesting by marching in the streets of several cities in Greece.
Some of the protests in Greece have been peaceful, but others have been violent and included fighting with police and burning buildings.
This is the second time Greece has been bailed out of money problems in the past two years. Some countries who lent Greece money have agreed that they only have to pay back some of it.
Still, other countries in Europe want Greece to work hard to pay back the money it has borrowed. They worry that if Greece doesn’t get the situation under control, the euro currency will no longer be popular and Greece’s problems will spread to other nations.


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