Osborne claims victory by caving in to EU demands

George Osborne has declared victory over his and David Cameron's demands that the European Financial Stability Mechanism (EFSM) mustn't be used to bail out Greece by agreeing to the EFSM being used to bail out Greece.

Osborne says that it's ok to use the EFSM to bail out Greece because the EU have agreed that although we've got to guarantee the loans to Greece we won't have to pay out when they default because the loans are backed up by Greek bonds. Which Greece would default on if they defaulted on these loans.

You can't make this stuff up!