Q&A: How Does Greece Bailout Affect Eurozone?

As Greece receives a second bailout, Sky News Europe correspondent Alex Rossi explains what it means for the eurozone.

We know Greece needs money but how much are they going to get?

The headline figure is a package of official loans from the IMF and the eurozone worth an estimated �?�109bn. The final communiqué also states a further �?�37bn will be given in voluntary contributions. The idea is to get Greece's debt level down and on a footing where the country has chance to pay it back. It's why Athens has also been given more time to repay loans - up to 40 years - and a lower rate of interest on the payments, about 3.5%.

Greece's track record as a safe bet has not exactly been gold standard so will they be able to pay the money back this time?

Greece has not looked like a good investment for sometime and the country will need help from the EU for many years. The eurozone has also proposed a 'Marshall Plan' for Greece to try and stimulate growth. It's hoped that along with the austerity measures Greece will eventually be able to find its feet and pay the money back.

Why does Greece need so much money and why's it being helped?

Greece needs money because it's bust. When it joined the euro it was able to access lower interest rates and went on a credit binge bloating out its public sector. That binge has left a nasty headache for Greece but the real problem is the threat of contagion to other eurozone countries. If Greece was not part of the euro it would be left to go to the wall but because it's a member of the single currency there's a risk of contagion. If Greece can fail how safe are other bigger economies like Italy and Spain which also have massive levels of sovereign debt?

Will they have to put up any collateral to get their hands on the cash?

Well apparently Finland demanded they put up the Parthenon, Acropolis and their islands as collateral for the loans i.e. the family silver. This though will not be part of the deal. They will like other countries getting help have to adhere to a stringent programme of austerity measures as dictated by the EU and the IMF.

We've had bailouts before - what makes this one different?

Good question and it is unclear just how significant this plan will be. The loans are perhaps uncontroversial, although taxpayers will be stumping up huge sums of cash. It may turn out though that the promise to beef up the EFSF - the big bail-out pot - will be the legacy of this summit. Sarkozy and Merkel say they'll issue further statements by the end of the summit with the French President making this dramatic promise "Our ambition is to seize the Greek crisis to make a quantum leap in eurozone government."

Is this the beginning of a transfer union where the richer Northern European countries prop up the poorer south - that is the �?�109bn question?

The markets aren't sentimental will they like what they see? Expect an initial rally as there's more cash on the table. The real test will be in the coming days. The thing to watch is the whether the cost of borrowing goes down for Spain and Italy; that will be key.

Before the summit there was talk of the end of the euro - will that still happen?

Who knows but it is unlikely anytime soon. The initial view is that countries at the summit have shown a united front and made a determined promise to save the euro and the ideal that gave it life. A forward step has finally been taken after months of dithering and bickering.

What about other struggling countries - are they being thrown a lifeline?

Yes. Portugal and Ireland will also be given more time to pay back their bailout loans and be able to access a lower rate of interest.

The deal sounds good but isn't it just a way of pretending that Greece is not simply in default?

Technically Greece is in default. After all some investors will not be getting all of their money back. German sources say the international credit ratings agencies have given assurances they will not rush to a judgment. The big question is - if a default card is served what impact will it have on the rest of the eurozone?