EU Gives Greece Second Bailout

Despite vehement protests among Greek voters, the European Union has decided to implement its second bailout of the troubled country. Eurozone finance ministers agreed today to a €130 billion rescue deal. European leaders hope the package will stabilize debt-laden Greece and provide a lifeline to the euro currency.

The Greek government also struck a crucial debt relief deal with private investors, sidestepping what would have been a catastrophic financial default.

Above all, the agreements are designed to protect Europe’s overall financial system. In the process, banks, pension funds and other bond investors are having to accept multibillion-dollar losses.

Meanwhile, many Greeks are unhappy because Athens adopted a new set of austerity measures last week. The new laws include €3.3 billion in wage, job and pension cuts. They also cut spending on health and defense. On top of that, Greek Prime Minister Lucas Papademos agreed to further wage and pension cuts on Saturday to help to secure the bailout.

In spite of heated opposition from a member nation’s citizens, the European Union is learning to wield its economic might to have the final say in countries like Greece. Today’s bailout encapsulates the relationship between Brussels and struggling member states, who are willing—or forced—to sacrifice and to obey in order to stay in the EU.

In spite of these maneuvers, many analysts still maintain a bleak outlook for the euro and the European Union as a whole. The Trumpet takes a much different view: The EU’s power and unity are just beginning to strengthen.

To understand the undemocratic and unsustainable nature of today’s EU deal with Greece, check back with theTrumpet.com tomorrow morning.