Tuesday, September 25, 2012

I.M.F.’s Call for More Cuts Irks Greece

As Greece enters a pivotal week in its economic crisis, tensions between the Greek government and the country’s international lenders have reached a boiling point. The government is resisting a push by the International Monetary Fund to impose additional austerity measures that Greek leaders fear could destabilize the shaky coalition government.
Although those talks are expected to resume later this week, they have been suspended since an angry exchange last week between the Greek finance minister and the I.M.F.’s top negotiator for Greece.
The impasse has elevated tensions here as Greece braces for a nationwide general strike planned on Wednesday that threatens to bring public services to a halt. The Greek people are increasingly angry over the prospect that public salaries and pensions will be cut again in a last-ditch bid to secure a new loan installment of 31.5 billion euros, or $40.7 billion, from Greece’s creditors.
The Greek prime minister, Antonis Samaras, plans to address the nation this week to bolster support for the austerity package. He has already publicly warned his center-right party, New Democracy, that he will oust lawmakers of the party failing to back the package once it comes up for a vote, probably in early October.
Various European leaders have gone out of their way in recent weeks to voice support for the Greek government, which came to power in June. And they have praised the Samaras government’s renewed commitment to taking difficult steps to revamp the economy despite concern that Greece could be a ward of its euro zone partners for years to come. Chancellor Angela Merkel of Germany has joined France in declaring that Greece must stay in the euro union to avoid even the perception that the union would be vulnerable to a wider breakup. 

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