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Greece warns of ‘great sacrifices’ as bailout agreed
May 2nd, 2010 - 5:19 pm IANS -
Athens, May 2 (DPA) Greek Prime Minister George Papandreou announced Sunday that Athens has reached an agreement with the European Union and the IMF for a multi-billion euro rescue package - but warned ordinary citizens would have to make “great sacrifices”.
“I will do anything to avoid the country going bankrupt,” Papandreou said during a televised cabinet meeting Sunday.
“Every Greek will be called upon to make great sacrifices to avoid disaster,” he added, saying the deal would be ratified later Sunday.
“It is an unprecedented support package for an unprecedented effort by the Greek people.”
Finance Minister George Papaconstantinou is scheduled to announce details of the austere spending cuts, as part of the loan agreement worth some 120 billion euros (160 billion dollars) over three years, immediately after the cabinet meeting.
The prime minister said the measures will affect public sector pay and pensions but not the private sector, as initially believed.
The deal, in exchange of tough measures, will be the first such rescue of a member of the 16-nation eurozone and eurozone finance minister have scheduled an emergency meeting later Sunday in Brussels to approve the European Union’s share of the deal.
Even if the measures are enough to stop the crisis from sinking other fragile European Union economies, the future remains stormy in Greece as public resistance to more cuts may hamper implementation of the reforms.
Angry protesters and riot police clashed in central Athens Saturday after thousands took to the streets in May Day rallies to signal their opposition to plans for the harsh public spending cuts.
According to one recent poll, in a country where one in five lives below the poverty line, more than half of Greeks say they will take to the streets if the government agrees to new austerity measures.
May 2nd, 2010 - 5:19 pm IANS -
Athens, May 2 (DPA) Greek Prime Minister George Papandreou announced Sunday that Athens has reached an agreement with the European Union and the IMF for a multi-billion euro rescue package - but warned ordinary citizens would have to make “great sacrifices”.
“I will do anything to avoid the country going bankrupt,” Papandreou said during a televised cabinet meeting Sunday.
“Every Greek will be called upon to make great sacrifices to avoid disaster,” he added, saying the deal would be ratified later Sunday.
“It is an unprecedented support package for an unprecedented effort by the Greek people.”
Finance Minister George Papaconstantinou is scheduled to announce details of the austere spending cuts, as part of the loan agreement worth some 120 billion euros (160 billion dollars) over three years, immediately after the cabinet meeting.
The prime minister said the measures will affect public sector pay and pensions but not the private sector, as initially believed.
The deal, in exchange of tough measures, will be the first such rescue of a member of the 16-nation eurozone and eurozone finance minister have scheduled an emergency meeting later Sunday in Brussels to approve the European Union’s share of the deal.
Even if the measures are enough to stop the crisis from sinking other fragile European Union economies, the future remains stormy in Greece as public resistance to more cuts may hamper implementation of the reforms.
Angry protesters and riot police clashed in central Athens Saturday after thousands took to the streets in May Day rallies to signal their opposition to plans for the harsh public spending cuts.
According to one recent poll, in a country where one in five lives below the poverty line, more than half of Greeks say they will take to the streets if the government agrees to new austerity measures.
