Sunday, September 18, 2011

Greece Holds Emergency Talks on Cutbacks

Wall Street Journal
September 18, 2011

Greece's government was meeting over the weekend after receiving fresh warnings from its euro-zone partners that future aid will be withheld unless it can produce conclusive steps to bring its unruly budget deficit into line.

Prime Minister George Papandreou aborted a planned trip to New York and Washington this week to preside over emergency meetings in Athens to identify new savings that will convince other euro-zone governments that targets can be met.

Senior Greek government officials say these new measures could include massive public-sector job cuts, steps that some government officials fear could trigger a new outburst of public protest and possibly new elections.

Pressure has been turned up on Greece after talks with visiting international inspectors were abruptly suspended earlier this month after it appeared the country would overshoot its budget deficit for this year. And without fresh aid, Greece will run out of money by mid-October.

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