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| Version 0 | Version 1 |
|---|---|
| Greeks face 'wartime' crisis - PM | Greeks face 'wartime' crisis - PM |
| (about 6 hours later) | |
| Greek Prime Minister George Papandreou has likened the country's budget crisis to a "wartime situation". | Greek Prime Minister George Papandreou has likened the country's budget crisis to a "wartime situation". |
| He said Greece was at risk of bankruptcy if it did not take radical extra measures to cut its debts. | He said Greece was at risk of bankruptcy if it did not take radical extra measures to cut its debts. |
| The comments come as Mr Papandreou is set to chair a cabinet meeting, expected to announce big budget cuts. | |
| The government in Athens has pledged to reduce its deficit from 12.7% - more than four times eurozone rules - to 8.7% during 2010. | The government in Athens has pledged to reduce its deficit from 12.7% - more than four times eurozone rules - to 8.7% during 2010. |
| It also also seeking to reduce its 300bn euros ($419bn; £259bn) debt. | It also also seeking to reduce its 300bn euros ($419bn; £259bn) debt. |
| 'Blow to wallets' | 'Blow to wallets' |
| "We find ourselves in a wartime situation, faced with the negative scenarios affecting our country," Mr Papandreou told the parliamentary group of his Socialist Party (Pasok). | "We find ourselves in a wartime situation, faced with the negative scenarios affecting our country," Mr Papandreou told the parliamentary group of his Socialist Party (Pasok). |
| Greece has recently been hit by a run of public-sector strikes | Greece has recently been hit by a run of public-sector strikes |
| He said that Greece had to avoid "a nightmare of bankruptcy" in which the state would not be able to pay salaries or pensions. | He said that Greece had to avoid "a nightmare of bankruptcy" in which the state would not be able to pay salaries or pensions. |
| Mr Papandreou has used some dramatic phrases to describe Greece's fiscal problems over the past few months, but this was his most alarmist to date, the BBC's Malcolm Brabant in Athens says. | Mr Papandreou has used some dramatic phrases to describe Greece's fiscal problems over the past few months, but this was his most alarmist to date, the BBC's Malcolm Brabant in Athens says. |
| The prime minister was effectively telling Greeks to prepare themselves for another blow to their wallets, our correspondent adds. | The prime minister was effectively telling Greeks to prepare themselves for another blow to their wallets, our correspondent adds. |
| On Wednesday, the prime minister is due to announce a series of new austerity measures at a cabinet meeting. | |
| These are expected to include a rise in tax, fuel tariffs and a special duty on luxury goods. | These are expected to include a rise in tax, fuel tariffs and a special duty on luxury goods. |
| The big question is whether he will have the nerve to slash the civil servants' incomes, our correspondent says. | The big question is whether he will have the nerve to slash the civil servants' incomes, our correspondent says. |
| Trade unions have warned the move will be tantamount to war. | Trade unions have warned the move will be tantamount to war. |
| Businesses in Greece are likely to react badly to further tax increases, as they see them as being counter-productive, discouraging consumer spending and contributing to a further downward spiral, our correspondent adds. | Businesses in Greece are likely to react badly to further tax increases, as they see them as being counter-productive, discouraging consumer spending and contributing to a further downward spiral, our correspondent adds. |