Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Berlin backs Greek bailout extension

Friday, February 27, 2015 - 02:17

Germany approves a four month extension for debt-ridden Greece, but warns Greece will not see any funds unless the agreed conditions are honoured. And, as Kirsty Basset reports, the Greek government faces a backlash at home.

▲ Hide Transcript

View Transcript

A vote with a great deal at stake. With Greece due to run out of money, German Finance Minister Wolfgang Schaeuble urged parliament to extend its bailout for a further four months, for the sake of Europe. (SOUNDBITE) (German) GERMAN FINANCE MINISTER, WOLFGANG SCHAEUBLE, SAYING: "We're not talking about new billions for Greece, we're not talking about any changes to this programme - rather it's about providing or granting extra time to successfully end this programme." And Germany's ruling conservatives came into line, with 542 lawmakers voting in favour in the 631 seat chamber - the biggest majority for any euro zone rescue package so far. It's bought Greece more time - but IG Market Analyst Alastair McCaig points out it's had years to get its house in order. (SOUNDBITE) (English) IG MARKET ANALYST ALASTAIR MCCAIG SAYING: "It's quite likely we'll find ourself in a very similar situation three months down the road whereby we're looking at a timeline ticking down to yet another deadline which Greece will have to meet." Despite Greece's assurances, Wolfgang Schaeuble has voiced doubts over whether Greece can be trusted to repay its debts. But some were openly hostile - with one Christian Democrat dissident asking parliament whether they would buy a used car from Greece's leaders. And they're not the only voices of dissent. Greek protesters hurled petrol bombs and clashed with police in Athens - in what is the first backlash against ruling Leftist party Syriza. They believe their leaders have reneged on key election promises to stand up to international creditors. McCaig says it could push Syriza into unknown territory. (SOUNDBITE) (English) IG MARKET ANALYST ALASTAIR MCCAIG SAYING: "There will become undoubtedly increased pressure for them to look to alternatives and possibly a removal from the euro zone and therefore defaults on some of their debt will be an increased possibility." Some German lawmakers said Athens was being given a 'last chance' to get its economic act together - only time will tell whether that act will be played out inside or outside the euro zone.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Berlin backs Greek bailout extension

Friday, February 27, 2015 - 02:17