Monday May 20, 2013 Search
Weather | Athens
32o C
21o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Coalition looking for new savings after troika rejects some cuts

Only some 6 billion of the 11.5 billion euros in spending cuts proposed by the Greek government has been accepted by the troika, which is pressing for public sector sackings as one of the policies Athens should turn to in order to make up the shortfall.

Representatives of the European Central Bank, the European Commission and the International Monetary Fund met with Prime Minister Antonis Samaras on Monday and informed him of their skepticism about some of the coalition’s measures.

Some 2.2 billion euros worth of cuts, which include about 1.2 billion euros in savings from reductions in operating costs in the public sector and 500 million euros in savings from financing for local authorities, has been rejected outright by Greece’s lenders.

The cuts also included 437 million euros from arms programs but the troika was not convinced this would lead to permanent savings. According to sources, the troika’s refusal to accept these savings surprised the government as it had designed the savings to be of a permanent nature.

The inspectors also asked for more details about some 3.5 billion euros’ worth of cuts. “We are trying to convince them about our position. The effort continues,” said Finance Minister Yannis Stournaras.

The minister will accompany Premier Antonis Samaras on his visit to Frankfurt on Tuesday to meet ECB President Mario Draghi. Samaras will return for talks with his coalition partners in Athens on Wednesday. The three party leaders will discuss other ways to meet the troika’s target. Samaras met on Monday with the ministers of defense, administrative reform, health and interior and asked them to come up with new suggestions for savings.

A Finance Ministry source said that the troika insists that some savings should come from immediate sackings in the public sector. The inspectors argue that employees at public organizations that are closed down should be fired. The government had been hoping to avoid direct sackings through a process of voluntary redundancies and a labor reserve scheme. Sources said that the troika has also suggested cuts to low-level pensions claimed by farmers and a further rise in the retirement age by a year or two.

Stournaras is to present the updated measures to fellow finance ministers at a Eurogroup meeting in Cyprus on Friday. The eurozone ministers were expected to take a decision on the disbursement of Greece’s next loan tranche when they meet on October 8 but a European official in Brussels told Kathimerini that this would only happen if the troika has completed its progress report on the Greek program by the end of September.

ekathimerini.com , Monday September 10, 2012 (22:04)  
13 injured in taverna blast in Salamina
No damage or injuries as bomb explodes close to Greek embassy in Libya
As visit to China concludes, Samaras offers incentives to invest in Greece
New Democracy, SYRIZA trade barbs over how to tackle Golden Dawn
ANALYSIS
Stock market rally built on perceptions
The continuing rally on the Athens stock exchange and the fast de-escalation of Greek bond yields were boosted by Fitch Ratings’ decision to upgrade Greece’s credit rating by one notch to B-...
TOURISM
Coco-Mat plans to open boutique hotel in Kolonaki
After the withdrawal of hundreds of hotel beds in the last four years due to the economic crisis, there will finally be some new beds added in Athens. They will be created by Coco-Mat, a loc...
Inside Business
TRACK & FIELD
Otto records world-leading jump in pole vault in Athens
Germany's Bjoern Otto recorded the world's leading performance in the men's pole vault at the Athens Street Pole Vault event that took place at Zappio, in central Athens, on Saturday afterno...
SOCCER
PAS Giannina stuns PAOK at Toumba
PAS Giannina upset PAOK at Thessaloniki on Sunday to take the lead at the Super League play-offs, while Asteras Tripolis rebounded from its loss at Ioannina in midweek to defeat Atromitos at...
Inside Sports
COMMENTARY
On a dangerous path
Certain people have created a monster and now, when they observe it, they wonder what it is. Golden Dawn, along with all its slogans and behavior, is the work of many, not one single person....
EDITORIAL
Carpe diem
The country has a unique opportunity to turn the page. Society has displayed incredible maturity and responsibility, despite all the hardships. Reforms which had been under discussion for de...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
 RECENT NEWS
1. Otto records world-leading jump in pole vault in Athens
2. PAS Giannina stuns PAOK at Toumba
3. Peristeri relegated to A2 as Ilisiakos stays up
4. Stock market rally built on perceptions
5. Coco-Mat plans to open boutique hotel in Kolonaki
6. Major international interest in PPC privatization process
more news
Today
This Week
1. 13 injured in taverna blast in Salamina
2. On a dangerous path
3. Carpe diem
4. Greece to sell Postbank, Proton in July, stress-test big banks
5. Coco-Mat plans to open boutique hotel in Kolonaki
6. Major international interest in PPC privatization process
Today
This Week
1. Olympiakos's Euroleague basketball win shows Greeks can 'reach the peak,' says President Papoulias
2. The vision thing
3. Golden Dawn MP ejected from Parl't after 'Heil Hitler' incident [UPDATE]
4. Greek economy shrank by 5.3% in Q1 of 2013 as recession continues
5. Do trophies mean anything after all?
6. Greece: A reality check
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  International Herald Tribune  |  RSS
Copyright © 2013, H KAΘHMEPINH All Rights Reserved.