Greek austerity - 'Final agreement'

2012-02-09 17:01

Athens - A "final agreement" has been reached among Greek political leaders on additional austerity measures demanded by EU-IMF creditors in return for a loan bailout, a government source said on Thursday.

"There is a final agreement on the measures," the source told AFP as eurozone ministers waited in Brussels to decide on the bailout worth €130bn that officials have laboured since October to finalise.

A Eurogroup meeting of finance ministers from the 17 nations using the single currency is due to open at 17:00 GMT in Brussels.

Government spokesperson Pantelis Kapsis said: "An announcement will be issued shortly," declining to go into further detail.

Speaking in Frankfurt, European Central Bank chairman Mario Draghi said the ECB had been informed that a deal had been reached on the requested austerity measures.

Draghi told a news conference that he had received a phone call from Greek Prime Minister Lucas Papademos just minutes earlier, adding: "He told me that agreement has been reached and has been endorsed by major parties".

Marathon talks between the socialist, conservative and far-right party leaders backing Prime Minister Lucas Papademos' interim government early on Thursday ended with agreement on most of the measures demanded to make up a budget deficit shortage of around three billion euros.

15 000 civil service lay-offs

But officials could not agree on how to cover a €625m gap in the deal, raising the daunting prospect that complementary pensions would have to be cut in the midst of a biting recession to make up the shortfall.

Full pensions are already slated for a 15% cut, according to reports, along with a 22% reduction in the minimum wage and 15 000 civil service lay-offs under the measures demanded by the EU, IMF and the European Central Bank.

Greece has run up total debt of about €350bn, roughly 160% of its gross domestic product, and the IMF has insisted that level be brought down to a maximum of 120% of GDP by 2020.

Private creditors are also negotiating a write-off of Greek debts worth at least €100bn, and are to meet on Thursday in Paris, according to a spokesperson.

All eyes are on Greece amid fears a failure to meet its debt obligations - with a bond payment due March 20 - could spark a domino effect that undermines the entire euro common currency project.

Read more on:    greece  |  europe debt crisis
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining

Inside News24

 
/News

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

Save up to 40% on outdoor accessories!

Tents, sleeping, day packs and more. While stocks last. Shop now!

Month End Madness Sale!

Save up to 60% on across a wide range of goods from books to electronics, DVDs and many more. Sale end 31 January 2015. Shop now!

Valentine’s Day gifts – 14 Feb!

Gifts to spoil him and her. While stocks last. Shop now!

30% off fragrances

Get 30% off fragrances for him and her. While stocks last. Shop now!

Up to 30% off All Textbooks

Save up to 30% off an extensive range of prescribed textbooks for all major universities and FET colleges. Shop Now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Spontaneity and bright ideas are emphasized today but there is a tendency to be too impulsive and you may want to keep a handle on...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.