Sunday, September 11, 2011

Greece vows to avoid default at all cost

Financial Times
September 10, 2011

George Papandreou has vowed to fully implement reforms demanded by international lenders so that Greece will be able to avoid default and remain a member of the eurozone.

The Greek prime minister told officials from his socialist party and business people: ”We’re travelling on an uphill road during an international storm … but our first priority is to save the country from bankruptcy.”

Thousands of protesters shouting anti-austerity slogans gathered outside a conference centre in the northern city of Thessaloniki where the premier was making his annual economic policy speech on Saturday.

Riot police fired tear gas to disperse protesters as a dozen separate groups, including public sector trade unions, university students and supporters of a local football club, staged marches around the city centre.

Mr Papandreou said he was committed to carrying out this week’s cabinet decisions: immediate cuts in civil service salaries and the planned dismissal of 20,000 public sector in the next few weeks – a condition for Greece to receive the next €8bn tranche of its current bail-out loan.

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