As leaders in Greece are trying to work around the new austerity proposal, one last hurdle has come in the way of its success early Thursday. What is at issue is the proposed cut in supplementary pensions, which has put a temporary halt on the ongoing negotiations between Greece Premier Lucas Papademos government and its foreign creditors.
After the 7-hour long meeting, it is officially confirmed that an agreement has been reached on all issues including the controversial 22% reduction in minimum wages, saving the one that proposes pension cuts. However, leaders are hopeful that they would still hammer out a compromise before the Eurogroup Finance ministers’ meeting in Brussels on Thursday.
The 50-page loan agreement proposed by its overseas financial backers is due to receive formal seal from the Greece cabinet sometime today, failing which Greece could be in a messy default without €130 bn bail-out fund. On the other hand, with elections in Greece expected as early as in May, political parties are in a dilemma whether or not to back the proposed pension cut as it is going to affect low-income groups and elderly.
With austerity talk coming to a halt in Greece, the attention is shifted on the Eurozone meeting in Brussels and its outcome.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment