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EU to bail out Greece -

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TICKY FULLERTON, PRESENTER: European leaders have struck a deal to help Greece get itself out of
financial trouble. The country's economy is in such desperate shape that Greece may default on its
loans and the bad news just keeps coming with fourth quarter figures showing that its economy
shrank by almost one per cent. Europe correspondent Philip Williams reports.

PHILIP WILLIAMS, REPORTER: As the Greek Prime Minister George Papandreou arrived at the EU summit,
all knew he was bearing not gifts but debts and a whole lot of trouble for everyone. There had been
talk of a rescue package, a Euro zone bail-out, but it was soon clear the cash was neither offered
nor requested.

HERMAN VAN ROMPUY, EU PRESIDENT: Euro area member states will take determined and coordinated
action if needed to safeguard financial stability in the Euro area as a whole.

PHILIP WILLIAMS: So beyond the vague rhetoric of support what is the deal? The answer is: we simply
don't know. But if the Greeks can't finance their immediate needs of more than 50 billion Euro,
then it's likely the IMF would be involved. The British Prime Minister Gordon Brown was making it
very clear this was not his problem, but one for the Euro zone countries.

GORDON BROWN, BRITISH PRIME MINISTER: There is of course international support available. That was
what we negotiated in London at the G20 in April and it was pursued through to Pittsburgh, but the
discussions at the moment are within the Euro area.

PHILIP WILLIAMS: The stronger Euro zone countries like Germany and France are very worried the
Greek problems could soon spread to other weak countries like Portugal, Spain and Ireland, but they
have their own problems to deal with. A short time ago official figures showed Germany didn't grow
at all in the final quarter last year, a surprisingly bad result. Italy's economy shrank 0.2 of a
per cent in the same period. The French were better with growth of 0.6 of a per cent, but hardly a
strong platform to bail out others.

Already the Euro has been shrinking against the US dollar, and though less pronounced, it's dropped
against the pound too.

Taxi drivers in Athens are the latest to take their protest about the Government's austerity
program to the streets. The day before, it was the public servants saying no to the cuts in wages
and conditions, pensions and programs.

And it may be here in the streets that it all unravels. With many more protests to come, the Greek
Government will need all the strength it can muster to resist angry citizens unprepared to make the
cuts demanded by other countries. The rest of Europe is praying it can.

Philip Williams, Lateline.