Greece economic bailout seems unlikely

Greece’s economic crisis looks set to stumble on as its European counterparts fail to offer any monetary support and its finance minister refuses to acknowledge that it needs to implement further cuts. Alistair Darling has also ruled Britain out of offering any monetary assistance.

Greece must raise £46.2bn this year to cover budget shortfalls and has set out plans for dramatic cuts in benefits and higher taxes on fuel, alcohol and tobacco to bring its deficit down from 12.7% to 3% by 2012. Any potential bailout will put increased pressure on rescuing other debt-ridden countries such as Portugal, Spain and Italy and on the euro.