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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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