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Greece faces ultimatum on new bailout | EurActiv

Greece's coalition parties must tell Brussels today (6 February) whether they accept the painful terms of a new bailout deal, as EU patience wears thin with political dithering in Athens over implementing reforms.

Technocrat Prime Minister Lucas Papademos tried to get leaders of the three parties in his government yesterday (5 February) to sign off on the terms of a €130 billion rescue, which Greece needs soon to avoid a chaotic debt default.

In a statement, Papademos said party chiefs - who may face angry voters in parliamentary polls as soon as April - had agreed measures including wage cuts and other reforms as part of spending cuts worth 1.5% of gross domestic product (GDP).

But a spokesman for the PASOK socialist party said a number of major issues demanded by the "Troika", representing Greece's EU, European Central Bank and IMF lenders, remained unresolved.

Talks on the new bailout, which would be Greece's second since 2010 - and an accompanying deal to ease the country's huge debt burden via its private creditors accepting deep losses on the bonds they hold - have dragged on for weeks, stretching the EU's patience to breaking point.

"Things are very tough and difficult," a Greek government official said, requesting anonymity.

Now the parties - PASOK, the conservative New Democracy and far-right LAOS - must respond to a working group of senior euro zone finance ministry officials who are preparing for a meeting of their ministers later in the week.

by Nomad (Bjinse) on Mon Feb 6th, 2012 at 03:21:40 PM EST
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Greece caves to pressure and cuts state jobs - Europe - Al Jazeera English

Greece's coalition government has agreed to demands to cut civil service jobs, announcing 15,000 positions would go this year, amid mounting international pressure to agree on austerity measures needed to secure major new debt agreements.

The announcement on Monday signals a major shift in Greece's policy, as state jobs have so far been protected during the country's acute financial crisis, which started about two years ago.

Dimitris Reppas, Greece's minister for public-sector reform, said the job cuts would be carried out under a new law that allows such firings.

Al Jazeera's John Psaropoulos, reporting from Athens, said the reduction in state workers may be only the beginning of job losses.

"[The cuts] are coming as part of a commitment to fire 150,000 public service workers... This is in addition to 200,000 public service employees who have left through [negotiated] dismissal, early retirement and firing," he said.

Greece is racing to push through painful reforms and clinch a $170bn bailout deal from its European partners and the International Monetary Fund to avoid a March default on its bond payments.

by Nomad (Bjinse) on Mon Feb 6th, 2012 at 03:22:05 PM EST
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Poverty without firing a shot. How civilized!

They tried to assimilate me. They failed.
by THE Twank (yatta blah blah @ blah.com) on Tue Feb 7th, 2012 at 04:59:06 AM EST
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BBC: Greece exit would not end euro, says EU commissioner
A similar message was delivered with a more optimistic spin by Jean-Claude Juncker, ...

"The euro will outlivebury us all," he said.



tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Carrie (migeru at eurotrib dot com) on Tue Feb 7th, 2012 at 05:18:44 AM EST
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