Euro leaders order new Greek bailout for early July

Euro leaders have ordered the "implementation by early July" of a new Greek bailout and pledged to do "whatever necessary" to maintain currency stability, in a draft declaration drawn up at an EU crisis summit.

"The euro area heads of state and government call on finance ministers to complete work on all these elements to allow their implementation by early July," the document said, referring to "additional funding" over and above last year's 110-billion-euro rescue.

The declaration, which can still change over late-night talks, spells out that a second bailout, again expected to top 100 billion euros, will draw on a combination of "official" or taxpayer monies, and "private sources."

It says the finished design of a rescue demanded by regular backer the IMF and worried international partner, the United States, should also allow "disbursement in time to meet Greece's financing needs in July."

That can be taken to refer to a 12-billion-euro tranche of loans from the first bailout that euro finance ministers refused to agree to hand over in talks this week, opting instead to await the outcome of a pending Greek parliamentary vote on massive new austerity cuts and sell-offs scheduled by June 30.

The leaders said Greek lawmakers must pass 28 billion euros of budget cuts over the next five years, and up to 50 billion in privatised state holdings, "as a matter of urgency in the coming days."

They called on "all political parties in Greece to support the programme's main objectives," saying "national unity is a prerequisite for success."

Greek authorities hammered out the make-up of those cuts during negotiations with the European Commission, the European Central Bank and the International Monetary Fund in Athens on Thursday.