British taxpayers risk being caught up in a £1.75trillion deal aimed at saving the euro by allowing Greece to default on its massive debts.
The three-pronged deal would set up a massive fund to create a «firewall» around the most indebted eurozone countries, allow for an «orderly» Greek default on at least some of its liabilities, and bail out European banks most at risk from debt.
German and French officials came up with the strategy which aims to end the eurozone’s sovereign debt crisis before it spirals completely out of control, plunging the world back into recession.
The likely deal came ahead of a major new setback for the British economy – with BAe Systems, Britain’s biggest manufacturer, poised to cut 3,000 jobs.
Whitehall officials believe the job losses could be announced as early as this week and are likely to affect the company’s military aircraft division in Warton, Lancashire, and Brough, Yorkshire.
The eurozone deal, being brokered by the G20 group of nations, would seek to «ring fence» the crisis around Greece, Portugal and Ireland – preventing it from spreading to major EU economies such as Italy and Spain.
Source: telegraph.co.uk