Greece is running out of time to carry out austerity measures that the Troika (EU, IMF and ECB) is imposing on it instead of the much-anticipated recovery plan. Without the 130 billion euros (that could be 145 billion euros to face a financial restructuring plan) will not be able to face debt maturity payments on March 20. Greece will be on the verge of default or bankruptcy, and the consequences will be unpredictable. The EU wants, among other things, for salaries in the Greek private sector to be cut by 20%. The measure is going to hit Greece hard, and the Greek government is currently negotiating with its political parties and could be prepared to accept the measure soon according to sources consulted about the negotiations.
The salary cut proposal is one of the most polemical items on the Troika's reform agenda. They consider it necessary for recouping Greece's ability to compete with other peripheral countries. The nation's minimum salary is 751 euros according to Eurostat, which is greater than salaries in Portugal (560 euros) and Spain (748 euros). The private sector labor association GSEE protested measures like this, because they believe that they are "catastrophes for workers."
A meeting between Prime Minister Luckas Papademos and the three leaders of the coalition was moved to today. March 20 will be a Sword of Damocles for Greece, and analysts figure that six weeks are needed to put together a recovery plan that Greece can use to face their debt obligations. Pasok party spokesperson Panos Beglitis said yesterday that the Troika gave Greece until midday yesterday to get a clear answer.
Greece's various political parties are confronted with the difficult task of deciding whether to accept a reform package that the voting public rejects or taking a chance of not receiving further international aid, which would bankrupt the country. Everything considered, Yorgos Karatzaferis, leader of the ultraconservative group Laos and also a member of the Government coalition, played down the importance of the EU's threats. "Greece is not going to abandon Europe. "Ultimatums like this are part of the negotiating process."