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European markets climb on news of Greek bail out agreement

Announcement that Greece will receive another 120bn euros of support causes markets to rise.

Thursday's agreement by European leaders to give Greece another 120bn euros (£105bn) of support has buoyed regional stock markets.

London's FTSE 100 index was up 1.2 per cent, Paris's Cac 40 by 1.3 per cent, and Frankfurt's Dax by 1 per cent on the news.

The money for the bail-out will come from the 17 eurozone countries as well as the International Monetary Fund (IMF). Countries from the 10 nations within the European Union but outside the single currency area will not contribute directly, something Germany had initially pressed for.

The first 110bn euro (£98bn) Greek rescue package was also a combination of funds from eurozone members and the IMF.

The Greek parliament is due to vote next week on the government's latest round of spending cuts and tax rises. If the vote goes through, Greece will receive the nest 12bn euro instalment of the current bail-out package.

If Greece does not receive this money by 15 July it will default on its loan paymets.

Emanuelle Degli Esposti is the editor and founder of The Arab Review, an online journal covering arts and culture in the Arab world. She also works as a freelance journalist specialising in the politics of the Middle East.