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| Greece PM in anti-corruption plan | Greece PM in anti-corruption plan |
| (10 minutes later) | |
| A plan to quell Greece's economic crisis will combat "systemic corruption" and "red tape", Greece's PM George Papandreou has told the BBC. | A plan to quell Greece's economic crisis will combat "systemic corruption" and "red tape", Greece's PM George Papandreou has told the BBC. |
| He has held talks with opposition leaders to discuss his raft of spending cuts, focusing on tackling corruption. | He has held talks with opposition leaders to discuss his raft of spending cuts, focusing on tackling corruption. |
| The planned reforms would include a 10% cut in social security and government spending, as well as a 90% tax on senior bankers' bonuses. | The planned reforms 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. |
| But Mr Papandreou urged unity, saying all members of society would have to pull their weight if Greece was to avoid "sinking under all its debts". | But Mr Papandreou urged unity, saying all members of society would have to pull their weight if Greece was to avoid "sinking under all its debts". |
| 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). | 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). |
| International ratings agency Fitch last week downgraded the country's credit rating - meaning it thought Greece was now a riskier place to invest. | International ratings agency Fitch last week downgraded the country's credit rating - meaning it thought Greece was now a riskier place to invest. |
| Cut corruption | Cut corruption |
| Systemic corruption and clientelism - paying money for political favours - had created a sense of the lack of the rule of law in Greece and accentuated issues such as tax evasion, the prime minister told the BBC. | Systemic corruption and clientelism - paying money for political favours - had created a sense of the lack of the rule of law in Greece and accentuated issues such as tax evasion, the prime minister told the BBC. |
| He says his plan will help reduce Greece's public deficit from the current 12% to less than 3% by 2013. | |
| "Bureaucracy costs 7% of GDP and we hope to halve it by cutting corruption and red tape," he said. | "Bureaucracy costs 7% of GDP and we hope to halve it by cutting corruption and red tape," he said. |
| Although Mr Papandreou has a big enough parliamentary majority to force through such cuts, he wants to forge a cross-party political consensus. | |
| Combating corruption was high on the agenda at Tuesday's meeting with opposition leaders ranging from the conservatives to the Communists, which was chaired by the country's president. | Combating corruption was high on the agenda at Tuesday's meeting with opposition leaders ranging from the conservatives to the Communists, which was chaired by the country's president. |
| Speaking after the meeting, Mr Papandreou said he and the party leaders had been in agreement on several points, "despite our possible ideological differences", Associated Press reported. | |
| However, opposition leaders were less welcoming about the measures announced on Monday. | However, opposition leaders were less welcoming about the measures announced on Monday. |
| "What is he asking us to support? His generalities? His delays?" said conservative leader Antonis Samaras, in comments reported by AP. | |
| The Communists, meanwhile, have already made it clear they do not think the financial crisis is a matter that requires national unity. | The Communists, meanwhile, have already made it clear they do not think the financial crisis is a matter that requires national unity. |
| Supporters of the left-wing PAME union on Tuesday attempted to blockade the entry to the finance ministry, with protestors lowering a massive banner from its roof which read "Rise up". | |
| The carefully choreographed demonstration was the start of what is likely to be a nationwide campaign of industrial unrest, says the BBC's Malcolm Brabant in Athens. | |
| 'Change or sink' | 'Change or sink' |
| On Monday Mr Papandreou had warned that Greece had "lost every trace of credibility" and needed to "change or sink". | On Monday Mr Papandreou had warned that Greece had "lost every trace of credibility" and needed to "change or sink". |
| Greece is trying to reassure markets about its economy | Greece is trying to reassure markets about its economy |
| He announced cuts in defence spending, pay and hiring freezes for public sector workers, as well as the closure of a third of Greece's overseas tourism offices. | He announced cuts in defence spending, pay and hiring freezes for public sector workers, as well as 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. | |
| 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. |
| Markets had a mixed response to the raft of cuts. On Tuesday evening, the Athens Stock Exchange was down by around 2%. | Markets had a mixed response to the raft of cuts. On Tuesday evening, the Athens Stock Exchange was down by around 2%. |
| 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. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |