The heads of Greece's coalition government are studying a draft deal on further austerity measures drawn up after late-night talks. They are due to meet with Prime Minister Lucas Papademos later in the day.
The leaders of Greece's coalition government are studying a draft deal on further austerity measures ahead of midday meeting where they are expected to approve the plan.
The heads of the socialist, conservative and far-right parties must approve the 50-page text before Greece can secure a vital second bailout worth 130 billion euros ($173 billion) from the European Union, the European Central Bank and the International Monetary Fund, an infusion of cash that is desperately necessary to avoid state bankruptcy in March.
The three institutions, known as the troika, have demanded cuts to private sector wages and pensions, as well as public sector layoffs and cuts to the country's defense, pension and health budgets.
The document, reportedly "tweaked up to the last minute," was drawn up during late-night talks Tuesday between Prime Minister Lucas Papademos and representatives of the troika, after coalition talks were postponed for a third day. Press leaks have said the plan will include a cut of around 20 percent in the minimum wage and the elimination of about 15,000 public sector jobs.
Unions held a general strike on Tuesday, protesting the income cuts and sharp tax increases of the past two years.
An "agreement in principle" from the three coalition parties is now necessary before the plan is approved by parliament, which could take place as early as the weekend.
cmk/acb (AFP, AP)
Comments