Greek economy crunch talks continue

Financial experts with Greece's economic fate in their hands are back in Athens deciding whether the country qualifies for another slice of bailout money to avert bankruptcy. With European Commission chief Jose Manuel Barroso admitting the EU is facing its worst-ever crisis, tense talks resume between Greek officials and negotiators from the Commission, the European Central Bank and the International Monetary Fund. The team, known as the "troika", want hard evidence that Greek austerity measures designed to revive the economy are in place before handing over the latest £7 billion instalment of a £95 billion bailout package approved for Greece by the 17 eurozone countries. Agreement on the latest sum is almost certain in the face of jittery markets which would react badly if Greece was allowed to default on its debts. But the "troika" knows that even agreement on a further bailout does not guarantee market confidence - particularly if the German Parliament today votes against a massive increase in Europe's current bailout fund for struggling euro-economies. The vote is on whether to endorse a eurozone commitment to boost bailout guarantees to 440 billion euros (£383 billion) - a figure already being dismissed as inadequate as the Greek crisis worsens and the prospect of "contagion" to other member states grows. Mr Barroso used his "state of the union" address to MEPs in Strasbourg on Wednesday to admit the scale of the problem facing not just the eurozone but the EU as a whole was the biggest in the bloc's history. He urged patience over the Greek debt problem, insisting Greece would remain in the euro and that tough measures to step up monitoring and control over eurozone economies would help stabilise the single currency. He warned: "Greece must implement its commitments in full and on time. In return, the other euro area members have pledged to support Greece and each other." His speech prompted a rise in markets - but that could fall back if the troika talks today end in deadlock, as they have before. However, new austerity measures approved by the Greek Parliament on Tuesday in the form of a controversial property tax, raised the prospect of agreement on more bailout cash to ease immediate needs in Athens.