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11 Feb, 2010 17:45

Greece’s debt crisis to top EU Summit in Brussels

European leaders have reached a deal to help Greece out of a debt crisis that threatens to spread to other eurozone nations.

The EU is under pressure to issue a clear signal to financial markets that Greece's current budget crisis will not destabilise the European currency.

Although no details have been given, all 27 EU members are now set to discuss what form the help will take at a summit that kicked off in Brussels on Thursday.

Nevertheless, the leader of Belgium's Left Socialist Party, Eric Byl, says the bloc will have a tough job bailing out Greece without other member countries demanding the same treatment.

“In reality, this summit will deal with only one issue – how are we going to come to a situation where we can help Greece out of its debt crisis even though Spain, Portugal, Italy, Ireland and others will follow demanding the European Union intervene to lessen their debt crisis,” Mr. Byl said.

Financial experts say American bankers Goldman Sachs may have helped Greece cover up the true depth of its debt situation.

Megan Carpentier, a contributor for the Washington Independent, says if the Greek crisis gets worse, it will come back at the United States:

“When Greece entered the Euro zone, they fudged come of the numbers about their deficits and continued to pile them up, and then Goldman Sachs worked with them in 2005 to design a plan by which they would issue bonds in another currency and use a fake exchange rate to rip more money out of that initiative.”