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Europe awaits final act in Greek tragedy

By David Elliot
Wednesday, 8 February 2012

Greece is the word on everyone's lips today as the beleaguered country looks to be bitterly divided over the conditions of a potential loan agreement with international lenders.

The European Union, International Monetary Fund and European Central Bank want to see further spending cuts and labour market reforms before they lend Greece the cash to pay back its bondholders.

If it doesn't agree, Greece will default on its loans and could seriously jeopardise the integrity of the European economy - and that's been the biggest fear over the last few weeks.

Despite this, the latest news suggests we shouldn't be so uptight as the European Commission vice president said the EU could survive without Greece.

So watch out, Greece might be dropped quicker than you think by the EU. And like a bank being free of its bad loans, our biggest customer could be on its uppers sooner than we expected.

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