Crisis: Greece, severe demands to Papademos from troika

Progress in meeting between PM and Dallara (IIF)

27 January, 12:09

The troika representatives Poul Thomsen (IMF), Klaus Masuch (ECB) and Matthias Morse (European Commission) The troika representatives Poul Thomsen (IMF), Klaus Masuch (ECB) and Matthias Morse (European Commission)

(ANSAmed) - ATHENS - A decisive weekend lies ahead for the Greek economy and for the government of Lucas Papademos. In a letter from its representatives to the Greek Prime Minister, the so-called "troika" has made demands including the reduction of pension subsidies, the liberalisation of all closed professions, and radical changes in the private sector, such as the abolition of the collective work contract, cuts to end-of-year and holiday bonuses, greater working flexibility, redundancies in the public sector and in banks and a plan to fight corruption. All of these measures are aimed at ensuring a green light for the latest 130 billion euro loan decided at the European summit of October 26.

The meeting this afternoon or tomorrow between Papademos and the leaders of the three parties that make up his government - George Papandreou from the Socialist Pasok party, Antonis Samaras of the centre-right New Democracy and the far-right LAOS party's Giorgios Karatzaferis - will take place amid tension caused by the severe demands made by the country's international creditors.

Newspaper reports say that the Prime Minister, who has already forwarded the troika's letter to party leaders and to ministers, intends to ask leaders to agree on its content and will repeat that time is running out for the government to negotiate, as pressure from the International Monetary Fund and the European Union remains strong, especially over the issue of reducing salaries.

Last night, Papademos held further talks with the director general of the Institute of International Finance (IIF), Charles Dallara. Following the meeting, an IIF statement spoke of "progress" made in talks between Greece and its private sector over Private Sector Involvement, underlining that "talks, which resume today, centred on technical and legal issues". Local political analysts say that the statement is "positive" for the outcome of talks.(ANSAmed).

© Copyright ANSA - All rights reserved