UK Economic recovery will be helped by the recent decision of the Eurogroup agreeing to a second bailout of the Greek government.  The problems in the eurozone have been making it harder for the UK economy to recover.  It has been hoped that a bailout would be worked out and the agreement was reached in the early hours of Tuesday morning after a 12 hour meeting.  The economic problems in the eurozone have contributed to the cautious tone of lenders in the UK which has led to many of the best remortgage deals being pulled from the market.  With this very difficult problem handled there should be less pessimism among lenders and perhaps cheaper remortgage deals will reappear.

Chancellor George Osborne remarked on the bailout saying "Of course, resolving the Greek situation is only part of resolving the eurozone crisis but I think we took a really significant step towards that last night and that is good for Britain because resolving the eurozone crisis would be the biggest boost that Britain could get for its economy this year."

The Eurogroup statement said: “The Eurogroup welcomes the agreement reached with the Greek government on a policy package that constitutes the basis for the successor programme. We also welcome the approval of the policy package by the Greek parliament, the identification of additional structural expenditure reductions of € 325 million to close the fiscal gap in 2012 and the provision of assurances by the leaders of the two coalition parties regarding the implementation of the programme beyond the forthcoming general elections.

“This new programme provides a comprehensive blueprint for putting the public finances and the economy of Greece back on a sustainable footing and hence for safeguarding financial stability in Greece and in the euro area as a whole.

“The Eurogroup is fully aware of the significant efforts already made by the Greek citizens but also underlines that further major efforts by the Greek society are needed to return the economy to a sustainable growth path.

“Ensuring debt sustainability and restoring competiveness are the main goals of the new programme. Its success hinges critically on its thorough implementation by Greece. This implies that Greece must achieve the ambitious but realistic fiscal consolidation targets so as to return to a primary surplus as from 2013, carry out fully the privatisation plans and implement the bold structural reform agenda, in both the labour market and product and service markets, in order to promote competitiveness, employment and sustainable growth.”