March 12, 2011
Barely 24 hours after declaring victory in his battle to win better terms for bailout loans to debt-stricken Greece, prime minister George Papandreou called an urgent cabinet meeting on Sunday amid mounting anger over concessions agreed for the improved conditions.
Despite securing a reduction in interest rates and extension in the repayment period of the €110bn (£95bn) EU and IMF rescue package, Papandreou came under fire at the weekend for accepting to pay too heavy a price at Friday's summit of eurozone leaders.
Under the new pact, Greece will be able to pay back the emergency aid over seven and a half years, up from three and a half, and at 1% less. "These decisions are a clear indication of the appreciation of the effort being made by Greece … and the Greek people," said the socialist leader. "We are €6bn better off."
But the backlash has been swift and sharp. On both the left and right politicians accused Papandreou of caving into German pressure to push ahead with a controversial €50bn privatisation programme including a fire-sale of prime state-owned properties in return.
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