by Calculated Risk on 2/28/2010 03:29:00 PM

From Stephen Castle and Landon Thomas Jr. at the NY Times: Europe Union Moves Toward a Bailout of Greece

[T]he European Union is moving toward the first bailout in the history of its common currency, which is expected to involve loan guarantees from the German and French governments to encourage their banks to buy Greek debt.

Even as the negotiations continue, the bloc is insisting that Athens impose further, painful austerity measures ...

During a brief visit, due to start Monday, Olli Rehn, the European commissioner for economic and monetary affairs, will press for more spending cuts and tax increases in Greece as a precursor to an emerging package of financial support.

These guarantees and further fiscal cuts are expected to be announced well in advance of the March 16th deadline Jean-Claude Juncker, Luxembourg's prime minister and chairman of the 16 euro-zone finance ministers, discussed two weeks ago.

And from Reuters:

Greece may soon announce new steps to cut its budget deficit, a [economy Minister Louka Katseli] said on Sunday, amid signs that Athens might be nearing a deal with European Union governments to ease the Greek debt crisis.
...
"If more measures are to be taken, they will be announced soon" [Katseli said]

It sounds like this debt guarantee package and further cuts might be announced later this week.