(Image Source: Bloomberg)

BY ORKIDE IZCI

Euro zone finance ministers have now agreed on Greece’s latest set of financial aid. The amount --8 billion euros. That’s 11 billion U.S. dollars. Bloomberg explains.  

“Euro-area finance ministers signed off on a ... loan to Greece under last year’s bailout as European leaders reopened talks on a new aid package that will involve writedowns on Greek debt. … Greek Finance Minister ... said the euro area’s approval of the next disbursement of funds was a ‘positive step’ that justified budget cuts needed for the money and would lead to better aid terms in a new financing package.”

Earlier this week, the Greek parliament had to agree on an austerity plan imposed by the Troika--the IMF, the European Union and the European Central Bank--to qualify for Friday’s approved loan.

CNBC reports--some Greeks aren’t happy with the plan.

“After a day of violence, the streets are quiet but the members of parliament have voted For the round of austerity measures which are going to hurt a lot of government workers, but the troika believes is necessary in order to help this economy grow and begin generating enough tax revenue so that it can start to pay bills.”


Despite the agreement--the New York Times reports European leaders are still divided on a concrete solution to the European economical crisis.

“With France and Germany on collision course over moves to increase the firepower of the euro zone’s bailout fund, the deal to help Greece provided some rare good news for ministers battling to produce a package of measures to reassure anxious markets.”

But Sky News points out the irony in the situation: the euro, which was designed to help make the European Union more cohesive, is now a source of tension.

“The idea behind the euro ... was that in due course the single currency’s members would become more like each other. ... These next few days and weeks could be among the most important in post-War European history – determining whether the continent’s history is one of further unity and joint sovereignty, or whether it frays, ushering in a more bordered, nationalistic future.”

Athens are set to receive the funds in mid-November. The 8 billion euros is a part of a 110 billion euros package. European ministers are already working on a second rescue package for Greece.