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EU to unveil Greece and Portugal bail-outs
Including the Greek and Irish bail-outs, the UK will be on the hook for a total of about €12.5bn once the Portuguese deal is ratified. The money is only at risk if a country defaults. Britain has pledged about €7bn to Ireland, €4.2bn to Portugal, and €1.3bn to Greece. Portugal is also expected to be forced to sign up to punishing fiscal consolidation plans, despite caretaker Prime Minister Jose Socrates' claim this month that he had secured more lenient terms than Ireland and Greece. Tough reforms, such as improving labour market flexibility and recapitalising its banks, will be demanded alongside new ... (full story)