Description: This is
a VOA Special English Economics Report.
See text below
Text:
Leaders of the European Union say they will help
Greece as it struggles under a mountain of debt.
They promise to take action, if needed, "to
safeguard financial stability in the euro area as a
whole." But the leaders did not announce any
detailed plan for Greece after meeting in February
in Brussels. They said that was because Greece has
not requested any financial support.
European Commission President Jose Manuel Barroso
said this means the government believes it does not
need the support.
Investors had a mixed reaction to the statements
from Brussels. Worries over Greek debt have pushed
the euro to its lowest value in months against the
dollar. European Union finance ministers discussed
the situation when they met in the Belgian capital
in February.
Sixteen of the twenty-seven nations in the European
Union use the euro as their currency. Now, the
stronger members are seeking ways to help the weaker
ones like Greece.
European Union rules limit the choices for a rescue.
The European Central Bank and national central banks
are barred from aiding members by purchasing their
debt.
European officials hope to avoid the crisis that
could spread if Greece fails to pay its debts.
Greece needs to borrow more than seventy billion
dollars this year to finance its budget and
refinance its debts.
In October, Greece said its budget deficit would
reach almost thirteen percent of its gross domestic
product last year. G.D.P. is the widest measure of
economic activity.
Greece represents less than three percent of the
euro area economy. But its deficit is around four
times the level permitted by the euro group. Greece
has promised to cut public spending in an effort to
reduce its deficit by four percentage points this
year.
And Greece is not the only country in trouble. High
levels of public debt in Ireland, Portugal and Spain
are also worrying debt markets.
Nations in the euro area share a common currency,
but not a common financial policy. This leads to big
differences in economic results. Some members have
very low levels of public debt. Others have very
high levels. Greeces debt could reach one hundred
twenty percent of its G.D.P. this year.
In February, the European Commission approved a
Greek plan to cut government spending. Thousands of
public employees in Greece held a strike to protest
cost-cutting measures.
And that's the VOA Special English Economics Report.
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Hi. I
personally reviewed this video and found it appropriate for
the news section of English Global Group. This
is a Voice of America video which covers an interesting
topic in Special English. I would appreciate some feedback from both
students and teachers about this video. You can comment in
the window below using any of a number of different services
including Facebook, Yahoo, AOL, and Hotmail.
