Thursday 21 June 2012

Greece to seek bailout extension


An official from the little Democratic Left party attending three-party talks before the statement of a new coalition government supposed the delay of the bailout deadline and an extension of unemployment reimbursement were key elements of a new government policy document.

The document was agreed among officials from the conservative New Democracy party, which won an vote on Sunday, and its new coalition associates, the Pasok socialists and Democratic absent, the official supposed.

The policy agreement sets up a difficult negotiation with Greece's euro zone associates, in particular paymaster Germany, which have offered modifications but no radical re-write of a €130 billion salvation agreed in March, which is keeping Athens from insolvency.

P.M  Antonis Samaras, manager of New Democracy, is predictable to unveil his cabinet today, but it is unlikely to contain any big-hitters from his leftist allies, in an ominous sign of their reluctant hold for the new government.

National Bank chairman Vassilis Rapanos will turn out to be economics minister.

The government faces the intimidating task of imposing the bailout's terms on a society opposite a fifth year of deep economic suffering, worsen by the withering pay, retirement fund and job cuts sought by Greece's lenders in the European Union and the International Monetary Fund.

The fundamental leftist Syriza bloc, which wants to tear up the bailout agreement, surged to second place in Sunday's election and will keep the government under steady pressure to soften its terms.

The official, who declined to be named, supposed the platform called for the renegotiation of terms to secure a two-year extension to the 2014 deadline for Greece to reduce its budget shortfall to 2.1 per cent from 9% in 2011.Greek officials have supposed the extension would require an extra €16-€20 billion in foreign financial support.

The government will as well seek to extend the payment of unemployment benefits to two years from one, to offer reimbursement to the self-employed without work and to limit public sector lay-offs, the official supposed.

The document was to be submit for approval at a meeting on Thursday of party best, after which the cupboard will be announced.

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