Greek bailout mounts pressure on PM

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Protests and riots on the streets have darkened Greeces future and is of immense pressure on George Papandreou, Prime Minister. This has also further darkened the countrys prospects of delaying the next rescue payment and has sent the world markets into turmoil.

Shares and oil prices plunged, with the Dow Jones Industrial average down by 180 points (by mid day, yesterday), while the price of West Texas crude had fallen by more than $2 a barrel. The hi-tech NASDAQ index was also down by more than 1%.

Meanwhile,protestershave threatened to surround Parliament as lawmakers have begun to debate budget cuts and asset sales that are conditions of the aid. The world markets are watching the situation with utmost fear and anxiety.

Athens though had received a 110b bailout a year; been unable to balance the books despite slashing public sector jobs and salaries, and raising taxes.

Fears that the contagion could spread to other European economies saw bond yields in Ireland and Portugal jump.

Sources: Economic Times; The Guardian

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