February 8, 2012
Time is running out for the Greek government, which needs to reach a deal on unpopular austerity measures if it is to secure a second EU/IMF bailout. German commentators argue the country has already suffered enough, saying what are needed now are measures to stimulate growth.
As the end game in Greece's crunch bailout talks looms, frustrations are high on all sides. One deadline after another has passed as parties in the Greek coalition government have repeatedly postponed meetings.
On Wednesday, leaders of the parties that make up Greece's coalition government were finally studying a 50-page document laying out a draft deal on tough austerity measures, which had been drawn up by the so-called troika of the European Commission, European Central Bank and the International Monetary Fund. Greek Prime Minister Lucas Papademos was due to meet leaders from the three parties in his coalition to discuss the deal later in the day.
The government has to agree to the cutbacks if it wants to secure a €130 billion ($170 billion) bailout from the European Union and IMF, or it will be forced to default in March. The troika wants Athens to make new cuts in private-sector wages and pensions, lay off public-sector workers and cut health, pension and defense spending.
An agreement was originally supposed to have been reached on Sunday, but the talks between party leaders have been repeatedly delayed over the past three days. A meeting on Tuesday was postponed, supposedly because of missing paperwork. Once the coalition agrees on the deal in principle, it will be put to the Greek parliament. If reached, the deal is likely to prove unpopular with the Greek population, and some observers in Athens believe that the parties are deliberately stalling the talks to make it look as if they are driving a hard bargain with the troika.
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