Debt talks
February 7, 2012
Greek coalition leaders were to reconvene on Tuesday for talks on austerity measures after failing a day earlier to agree over crucial budget cuts.
Greece’s finance minister, Evangelos Venizelos, blamed political disunity for the stalemate, saying: "Instead of looking at this tragic dilemma … with national unity … there are many who spend their effort on a conventional, outdated, party confrontation as if nothing has happened."
The country’s two biggest unions, meanwhile, began a 24-hour general strike to protest the implementation of further austerity measures. Their slogan was: "That's enough, we can't take anymore."
Franco-German pressure
French President Nicolas Sarkozy and German Chancellor Angela Merkel called on Greece's leaders on Monday to "live up to their responsibilities" and vote in favor of austerity measures if they want to receive a new bailout.
"The Greeks have made commitments. They must scrupulously respect them," Sarkozy said after meeting Merkel for the 14th Franco-German summit in Paris. "There's no choice, time is running out. It's a matter of days. We have to reach a conclusion now."
A deal on new austerity measures is a prerequisite to receive the 130-billion-euro (roughly $170 billion) bailout from the so-called troika - the European Union, International Monetary Fund (IMF) and European Central Bank (ECB). The latest delay came just hours after EU euro commissioner Olli Rehn said that the negotiations had "already passed the deadline."
Greece under pressure
During their talks, Sarkozy and Merkel discussed a financial transaction tax and the coordination of their respective national economic policies, in addition to the political situation in Athens.
"We want Greece to stay in the eurozone," Merkel said. "To say it clearly, this is the opinion of both of us (France, Germany)."
"But I also say there can be no new Greece program if agreement is not reached with the Troika," the chancellor continued. "All those who bear responsibility in Greece must know we will not deviate from this position."
The French and German leaders also agreed that a separate account should be created to house the interest on Greece's debt.
slk/ccp/msh/dfm (AP, AFP, dpa)