ATHENS (Reuters) - Greek Prime Minister George Papandreou complained to IMF head Dominique Strauss-Kahn on Saturday, saying the behavior of IMF inspectors monitoring a multi-billion euro bailout was "unacceptable."
In a rare, harsh attack on the international lenders who saved the country from bankruptcy last year, the government told them to stop interfering in domestic affairs, but did so only after local media had criticized it for not responding to the inspectors' calls for faster and more drastic action.
The EU, IMF and ECB inspectors gave deeply indebted Greece the green light for more aid on Friday, but struck a more critical note than on previous visits, saying Athens must speed up reforms, fight vested interests and sell off far more assets.
Papandreou had a phone conversation with Strauss-Kahn "in which he conveyed the message of the Greek government about the unacceptable behavior of the representatives of the European Commission, ECB and IMF during yesterday's news conference," Papandreou's office said in a statement.
The government issued the statement after coming under fire from local media for not reacting to the inspectors' criticism of some professions for holding repeated strikes, and their call on the government to accelerate the pace of privatizations to help turn the economy around.
Earlier in the day, government spokesman George Petalotis said "We asked nobody to interfere in domestic affairs ... We have needs but also limits, and we are not negotiating with anybody the limits of our self-respect. We only take orders from the Greek people."
"NOT POSSIBLE"
The inspectors were in Athens to monitor fourth quarter progress on the 110 billion euro fiscal consolidation plan. They commended Greece for being broadly on track with reforms and approved a 15 billion euro aid installment.
But, referring to groups opposing plans to open up highly regulated professions, International Monetary Fund mission chief Poul Thomsen told the news conference:
"Some of the groups who are out on the streets, truck drivers, pharmacists ... They are hiding behind their privileges that allow them to extract high prices, impose a big burden on the rest of society."
He urged Greeks not to let "those who have vested interests" to prevent the many from benefiting from privatizations.
Pharmacists, bus drivers and doctors have been holding on and off strikes for weeks over reforms of their professions, creating massive traffic jams in central Athens.
In another sign of tension over cooperation with the IMF and Greece's euro zone partners, who allowed the country to avoid default but imposed unpopular public wage cuts and tax rises, a minister criticized the call for more privatizations.
The lenders set an ambitious target for privatization proceeds, saying on Friday that 50 billion euros should be raised in 2011-2015. The government's previous target was for 7 billion euros in 2011-2013.
"Revenues of 50 billion euros by 2015 from privatizations of state assets are not possible," Infrastructure Minister Dimitris Reppas told state TV Net on Saturday, the day after the EU and IMF officials ended their visit.
A finance ministry official, however, had said on Friday that Greece had agreed to the new target of 50 billion euros.
IMF officials declined to comment on the Greek government's criticism. The main opposition party, the conservative New Democracy, said the government was well aware of the lenders' demands and its reaction was "a farce."
