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Page last updated at 09:54 GMT, Tuesday, 21 February 2012

'Short social fuse' in Greece


A massive second bail out of €130m for Greece was finally thrashed out in the early hours of the morning but in striking the deal Greece had to agree that it would cut its debt to 120% of GDP by 2020.

Constantine Michalos, president of the Athens Chamber of Commerce and Industry, told the Today programme's Sarah Montague that while he agrees reform is needed, the "horizontal cuts" being implemented that have brought austerity upon austerity and are not addressing the need to stimulate growth.

"Incomes in Greece are now below European poverty line" he said, adding that he "fears the worst" with a second programme of austerity in Greece.

Need a full commitment from the European Union we need to look at how much is going to be utilised in investment for growth.

Professor Panos Tsakloglou of Athens University of Economics and Business said the second bailout was "absolutely necessary but may not be sufficient" because the economy needs to be jump started through investment.

He said that people are talking about a "mini Marshall Plan" in order to put the economy into sustainable position for the future.

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