Home
   Germany tells Greece to decide fast on bailout package as unions strikeThe Iran News.Net
 Germany added to Greece's discomfiture by pressing the emergency button saying eurozone officials are running out of patience. Papademos held hectic meetings with Greece's European Union and IMF lenders till the early hours Tuesday on the bailout plan. He has a difficult task now on hand to convince leaders of the three parties in his coalition government to accept the EU/IMF conditions for the 130-billion-euro ($170-billion) rescue plan. Greece needs the money urgently to avoid defaulting on a 14.5 billion euros bond redemption in March. International lenders and other nations are also concerned that a default by Greece could force Athens out of the euro monetary system, which would cause upheavals in the global financial system. Meanwhile, German Chancellor Angela Merkel, in a sign of thinning patience, said that time was of essence and that eurozone officials were on the verge of losing patience. She told Greece on Monday that it had better make up its mind fast if it plans to accept the deal, and its conditions on reforms that are aimed to make Athen's economy more competitive and would involve big cuts in living standards. Eurozone officials want the full package to be agreed to by Greece and approved by the euro zone, the European Central Bank and IMF by Feb 15. Greece's political leaders are unhappy about the tough package of fiscal and economic reforms that are a condition of the bailout. The package involves a plan to reduce public spending by 1.5% of gross domestic output this year, additional job and salary cuts, as well as pension reforms and tougher tax enforcement, which has angered trade unions. The country's unions have called strikes to protest the austerity measures. Two of the largest Greek public-sector unions - GSEE and ADEDY - began a strike Tuesday, leading to public transport grinding to a halt and the closing of ports and tourist sites. Greece is expected to suffer a fifth consecutive year of recession this year. The country's economy has shrunk 12% since 2008. Few staff turned up at state hospitals and even teachers, bank employees and telecom workers joined the strike in large numbers. In Syntagma Square in central Athens, protesters gathered and chanted anti-austerity slogans. "No to medieval labor conditions, don't bow your heads, show resistance!"
Have your say on this story |
| ||||||||||||||||||||||
