German Chancellor Angela Merkel said the Greek government’s announcement of additional budget-deficit cuts is a “courageous step” that’s already yielding results.
Greek Prime Minister George Papandreou and his government “took the bull by the horns for the first time, and we should be supportive toward Greece, not put up obstacles,” Merkel told reporters in Munich today.
The Greek government two days ago announced an additional program of budget-cutting and revenue raising measures amounting to 4.8 billion euros ($6.5 billion). Greece then sold 10-year bonds yesterday, with investors bidding for more than three times the 5 billion euros it sought to raise.
