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Greece PM seeks support for cuts Greece PM seeks support for cuts
(about 7 hours later)
Greek PM George Papandreou is to ask opposition party leaders for their help on a debt-reduction plan aimed at quelling the country's economic crisis. Greek PM George Papandreou has met opposition party leaders to discuss his debt-reduction plan aimed at quelling the country's economic crisis.
He earlier unveiled a raft of spending cuts, warning the country was at risk of "sinking under its debts".He earlier unveiled a raft of spending cuts, warning the country was at risk of "sinking under its debts".
The planned cuts would include a 10% cut in social security and government spending, as well as a 90% tax on senior bankers' bonuses.The planned cuts would include a 10% cut in social security and government spending, as well as a 90% tax on senior bankers' bonuses.
Trade unions have called for nationwide strikes to protest against the reforms.Trade unions have called for nationwide strikes to protest against the reforms.
At dawn on Tuesday, supporters of the left-wing PAME union attempted to blockade the entry to the finance ministry where the cuts were being orchestrated. Tuesday's meeting with opposition leaders ranging from the conservatives to the Communists was chaired by the country's president, and focused on tackling corruption.
The 100-strong protest was, says the BBC's Malcolm Brabant in Athens, a carefully choreographed demonstration designed for maximum coverage on Greek morning television, and the start of what is likely to be a nationwide campaign of industrial unrest. Speaking after the meeting, Mr Papandreou said he and the party leaders had been in agreement on several points, "despite our possible ideological differences", AP reported.
Protestors climbed onto the roof and lowered a banner reading "Rise up" covering four floors at the building. However, opposition leaders were less welcoming about the measures announced on Monday, which Mr Papandreou said would help reduce Greece's public deficit from the current 12% to under 3% by 2013.
"There will no truce, no truce in fighting for the rights of the workers," said PAME spokesman Giorgos Skiadiotis. "What is he asking us to support? His generalities? His delays?" said conservative leader Antonis Samaras, in comments reported by Associated Press.
Protection racketeers?Protection racketeers?
Ahead of his meetings with opposition leaders ranging from the Conservatives to the Communists - which were to be chaired by the country's president - Mr Papandreou called for national unity, vowing to reduce Greece's public deficit from the current 12% to under 3% by 2013. Mr Papandreou proposed cuts in defence spending, pay and hiring freezes for public sector workers, and the closure of a third of Greece's overseas tourism offices.
His proposed cuts in defence spending, pay and hiring freezes for public sector workers, and the closure of a third of Greece's overseas tourism offices.
He also called for reforms of the tax inspectorate, designed to remove corruption and end tax evasion.He also called for reforms of the tax inspectorate, designed to remove corruption and end tax evasion.
Many businesses regard the inspectors as all-powerful protection racketeers who threaten companies with audits and heavy fines unless they pay bribes, says our correspondent. Many businesses regard the inspectors as all-powerful protection racketeers who threaten companies with audits and heavy fines unless they pay bribes, says the BBC's Malcolm Brabant in Athens.
Mr Papandreou says the inspectors will be monitored by a new finance police, designed to guarantee that companies and individuals pay fair amounts of tax.Mr Papandreou says the inspectors will be monitored by a new finance police, designed to guarantee that companies and individuals pay fair amounts of tax.
Risky business
In a speech to business and union leaders on Monday, Mr Papandreou said that Greece had "lost every trace of credibility" and needed to "change or sink".In a speech to business and union leaders on Monday, Mr Papandreou said that Greece had "lost every trace of credibility" and needed to "change or sink".
Greece is trying to reassure markets about its economy
The comments came a week after international ratings agency Fitch downgraded the country's credit rating - meaning it thought Greece was now a riskier place to invest.The comments came a week after international ratings agency Fitch downgraded the country's credit rating - meaning it thought Greece was now a riskier place to invest.
Risky business
Finance Minister George Papaconstantinou earlier defended Greece's position in the eurozone, despite its deficit being far above the European Union limit of 3%.Finance Minister George Papaconstantinou earlier defended Greece's position in the eurozone, despite its deficit being far above the European Union limit of 3%.
He said Greece was worthy of its place because it "abides by the rules".He said Greece was worthy of its place because it "abides by the rules".
Mr Papaconstantinou told the BBC: "Greece is not the next Iceland, nor is it the next Dubai... it is tackling the very serious situation that we have."Mr Papaconstantinou told the BBC: "Greece is not the next Iceland, nor is it the next Dubai... it is tackling the very serious situation that we have."
Since last week's decision by Fitch, Greece has come under increasing pressure to take action over its deficit from the European Central Bank. The country's public debt stands at 300bn euros ($442bn; £269bn).Since last week's decision by Fitch, Greece has come under increasing pressure to take action over its deficit from the European Central Bank. The country's public debt stands at 300bn euros ($442bn; £269bn).
On Tuesday, the Athens Stock Exchange was down by more than 1% in morning trading. Greece is trying to reassure markets about its economy
On Tuesday, the Athens Stock Exchange was down by more than 1%.
Meanwhile, supporters of the left-wing PAME union attempted to blockade the entry to the finance ministry where the cuts were being orchestrated.
The 100-strong protest was, says our correspondent, a carefully choreographed demonstration designed for maximum coverage on Greek morning television, and the start of what is likely to be a nationwide campaign of industrial unrest.
Protestors climbed onto the roof and lowered a banner reading "Rise up" covering four floors at the building.
"There will be no truce, no truce in fighting for the rights of the workers," said PAME spokesman Giorgos Skiadiotis.
Are you in Greece? Will you be affected by the spending cuts? Do you think they are necessary? Send us your comments using the form below.Are you in Greece? Will you be affected by the spending cuts? Do you think they are necessary? Send us your comments using the form below.
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