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Greece economy bailout one year on

It is exactly a year since official EU figures revealed the true state of Greece's public finances.

Within a day, Prime Minister Papandreou had been forced to request a 98 billion Euro bailout from the EU and IMF.

A year on, and despite the bailout and a raft of austerity measures, Greece's financial situation seems to have got worse, not better.

The bond markets have punished Greek government debt in recent weeks, with Greece's borrowing costs hitting yet another record high on Thursday.

Investors are increasingly betting they will not be repaid in full, making it more likely that Greece will become the first Western European country to default on its debt in 60 years.

Nigel Cassidy reports.

  • 22 Apr 2011
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