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| Greece unveils austerity measures | Greece unveils austerity measures |
| (about 6 hours later) | |
| Greek Prime Minister George Papandreou has announced tough austerity measures aimed at cutting his country's soaring public debt. | Greek Prime Minister George Papandreou has announced tough austerity measures aimed at cutting his country's soaring public debt. |
| Mr Papandreou said a public sector pay freeze and fuel duty increases were essential because the economic crisis was propelling Greece towards a cliff. | Mr Papandreou said a public sector pay freeze and fuel duty increases were essential because the economic crisis was propelling Greece towards a cliff. |
| He said the EU was pressuring him to curb the budget deficit, which is four times higher than the 3% permitted. | He said the EU was pressuring him to curb the budget deficit, which is four times higher than the 3% permitted. |
| The European Commission will meet later on Wednesday to consider his measures. | The European Commission will meet later on Wednesday to consider his measures. |
| Earlier, one of the principal architects of the euro warned against any financial rescue of Greece, saying it could destabilise the currency. | Earlier, one of the principal architects of the euro warned against any financial rescue of Greece, saying it could destabilise the currency. |
| The German economist Otmar Issing told the BBC that after years of violating rules and cheating on its statistics, Greece had to reform its own economy without a bailout from Brussels. | The German economist Otmar Issing told the BBC that after years of violating rules and cheating on its statistics, Greece had to reform its own economy without a bailout from Brussels. |
| Austerity will be a hard sell - many on the left will fight cuts and wage freezes Gavin HewittBBC Europe editor Read more in Gavin's blog | |
| "These reforms which are needed will be blood and tears... but without that, Greece will never overcome the difficulties," he said. | "These reforms which are needed will be blood and tears... but without that, Greece will never overcome the difficulties," he said. |
| 'Unprecedented crisis' | 'Unprecedented crisis' |
| In a televised address on Tuesday, Mr Papandreou urged the public and his political rivals to support his austerity programme. | In a televised address on Tuesday, Mr Papandreou urged the public and his political rivals to support his austerity programme. |
| "This is an effort to stop the country's course towards the cliff," he said. | "This is an effort to stop the country's course towards the cliff," he said. |
| "Our country is at the centre of a speculative attack. It is being treated as the weak link of the Eurozone. | "Our country is at the centre of a speculative attack. It is being treated as the weak link of the Eurozone. |
| "We must act in an imminent and efficient manner and it is for that reason that I called on the political parties to support this national effort," he added. | "We must act in an imminent and efficient manner and it is for that reason that I called on the political parties to support this national effort," he added. |
| A deficit of such a magnitude must be decisively corrected Jose Manuel Barroso,European Commission president Greece 'should not get bail-out' | |
| The prime minister said tough measures were needed in the face of such an "unprecedented crisis", including a 10% cut in wages and spending in the public sector, a higher retirement age and an increase in fuel prices. | The prime minister said tough measures were needed in the face of such an "unprecedented crisis", including a 10% cut in wages and spending in the public sector, a higher retirement age and an increase in fuel prices. |
| He also pledged to go after tax evaders and said those who could afford to pay more would be forced to do so. | He also pledged to go after tax evaders and said those who could afford to pay more would be forced to do so. |
| "The time has come to take brave decisions here too in Greece as others have done in European Union countries," Mr Papandreou said. | "The time has come to take brave decisions here too in Greece as others have done in European Union countries," Mr Papandreou said. |
| Strikes | Strikes |
| BBC Europe editor Gavin Hewitt, who is in Athens, says the view of the European Union is that the Greek plan is risky but achievable. | BBC Europe editor Gavin Hewitt, who is in Athens, says the view of the European Union is that the Greek plan is risky but achievable. |
| The bloc is likely to offer its support, but on the condition that Greece accepts outside scrutiny of its accounts, he says. | The bloc is likely to offer its support, but on the condition that Greece accepts outside scrutiny of its accounts, he says. |
| Farmers are already blocking major roads in a bid to get state financial aid | |
| "A deficit of such a magnitude must be decisively corrected. Moreover, the government debt in Greece is excessively high," European Commission President Jose Manuel Barroso told reporters. | "A deficit of such a magnitude must be decisively corrected. Moreover, the government debt in Greece is excessively high," European Commission President Jose Manuel Barroso told reporters. |
| EU rules state that no nation in the euro bloc should have an annual budget deficit which is higher than 3% of its gross domestic product. | EU rules state that no nation in the euro bloc should have an annual budget deficit which is higher than 3% of its gross domestic product. |
| Greece's public debt stands at about 300bn euros ($419bn, £259bn). The government aims to shrink public debt to 9.1% of overall economic output this year, down from 12.7% last year. | Greece's public debt stands at about 300bn euros ($419bn, £259bn). The government aims to shrink public debt to 9.1% of overall economic output this year, down from 12.7% last year. |
| Our correspondent says the first challenge for the austerity package may come on the streets, with public sector workers planning a strike next week. | Our correspondent says the first challenge for the austerity package may come on the streets, with public sector workers planning a strike next week. |
| "The government's policies are clearly aimed exclusively at raising money and once again lay the burden on those who have been exploited for years - workers and pensioners," Ilias Iliopoulos, general secretary of the civil servants' union, told the Associated Press news agency. "These policies will lead nowhere." | "The government's policies are clearly aimed exclusively at raising money and once again lay the burden on those who have been exploited for years - workers and pensioners," Ilias Iliopoulos, general secretary of the civil servants' union, told the Associated Press news agency. "These policies will lead nowhere." |
| Farmers are already blocking major roads across the country in a bid to get financial help from the government, which has so far refused. | Farmers are already blocking major roads across the country in a bid to get financial help from the government, which has so far refused. |
| Are you in Greece? What is your reaction to the planned austerity measures? Do you support the programme? Will the cuts affect you? You can send us your views using the form below: | |
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