September 21, 2011
The Greek government is to impose tougher austerity measures in a move to persuade international lenders to give it more bailout funds.
A cabinet meeting on Wednesday agreed to further cuts in pensions, to extend a property tax, and to put tens of thousands of public workers on notice.
It follows two days of tough talks with the International Monetary Fund (IMF) and European authorities.
Some state pensions will be cut by up to 20%, a government official said.
The Greek cabinet met for more than six hours to discuss further austerity measures in return for an 8bn-euro (£6.9bn) tranche of aid needed to avoid default.
Athens has been in two days of negotiations with the so-called troika of the IMF, European Commission and European Central Bank over the terms of its bailout.
The new measures include raising the number of civil servants to be suspended on partial pay to 30,000 by the end of this year from 20,000.
Monthly pensions above 1,200 euros will be subject to a 20% cut of the amount above that threshold.
Pensioners below the age of 55 will see a 40% cut in the amounts of their pensions above the 1,000 euros limit.
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