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| Greece needs more time for cuts, says PM Samaras | Greece needs more time for cuts, says PM Samaras |
| (about 2 hours later) | |
| Greece's Prime Minister, Antonis Samaras, has called for more time to implement tough spending cuts and reforms, ahead of talks on its bailout. | Greece's Prime Minister, Antonis Samaras, has called for more time to implement tough spending cuts and reforms, ahead of talks on its bailout. |
| Mr Samaras told German daily Bild that Greece needed "breathing space". | Mr Samaras told German daily Bild that Greece needed "breathing space". |
| He will meet Jean-Claude Juncker, the head of the Eurogroup of finance ministers later, and the French and German leaders later this week. | He will meet Jean-Claude Juncker, the head of the Eurogroup of finance ministers later, and the French and German leaders later this week. |
| At issue is whether Greece has done enough to receive its next instalment of loans worth 31.5bn euros (£24.7bn). | At issue is whether Greece has done enough to receive its next instalment of loans worth 31.5bn euros (£24.7bn). |
| Failure to unlock the funds could lead to Greece defaulting on its vast public debt and possibly leaving the euro. | Failure to unlock the funds could lead to Greece defaulting on its vast public debt and possibly leaving the euro. |
| Under the terms of the bailout agreement with Europe and the International Monetary Fund (IMF), Greece needs to demonstrate it can find 11.5bn euros in public spending cuts within two years in order to qualify for the money. | Under the terms of the bailout agreement with Europe and the International Monetary Fund (IMF), Greece needs to demonstrate it can find 11.5bn euros in public spending cuts within two years in order to qualify for the money. |
| At the talks with Mr Juncker, he is expected to float the idea of Greece being given a two-year extension to the deadline. | At the talks with Mr Juncker, he is expected to float the idea of Greece being given a two-year extension to the deadline. |
| 'Growth needed' | 'Growth needed' |
| The eurozone crisis can feel like watching a road crash in slow motion, very slow motion. | The eurozone crisis can feel like watching a road crash in slow motion, very slow motion. |
| The Greeks are still lobbying hard for more time to find the cuts that are necessary if it is to win the next tranche of international aid that it desperately needs. | The Greeks are still lobbying hard for more time to find the cuts that are necessary if it is to win the next tranche of international aid that it desperately needs. |
| And as the traditional torpor of the balmy Mediterranean summer holidays begins to draw to a close politicians are returning to their desks in the continents' capitals and enquiring about the health of the eurozone. | And as the traditional torpor of the balmy Mediterranean summer holidays begins to draw to a close politicians are returning to their desks in the continents' capitals and enquiring about the health of the eurozone. |
| As the poet said: "Across the wires the electric message came: 'He is no better. He is much the same.'" | As the poet said: "Across the wires the electric message came: 'He is no better. He is much the same.'" |
| And that is the problem the crisis in the eurozone has been pretty constant for years now, no treatment seems to make it better, but the illness doesn't seem capable of killing the patient either. | And that is the problem the crisis in the eurozone has been pretty constant for years now, no treatment seems to make it better, but the illness doesn't seem capable of killing the patient either. |
| But quietly things may be coming to a head. | But quietly things may be coming to a head. |
| The Greek government will be desperate for a positive report from the troika as it knows full well that the willingness of northern Europeans to give it more time and more money is wearing thinner and thinner, and the longer the crisis continues the more time they have had to prepare for a Greek exit. | The Greek government will be desperate for a positive report from the troika as it knows full well that the willingness of northern Europeans to give it more time and more money is wearing thinner and thinner, and the longer the crisis continues the more time they have had to prepare for a Greek exit. |
| The real danger for the Greek government is that the rest of the eurozone decides that, upon reflection, they could survive without Greece after all. | |
| He will argue that Greece has lost time because of elections this year, and that it should be allowed to move more gradually in order to ease the economic pain felt by the Greek people, the BBC's Mark Lowen reports from Athens. | He will argue that Greece has lost time because of elections this year, and that it should be allowed to move more gradually in order to ease the economic pain felt by the Greek people, the BBC's Mark Lowen reports from Athens. |
| "Let me be very explicit: we demand no additional money. We stand by our commitments," Mr Samaras told German tabloid Bild in an interview published on Wednesday. | "Let me be very explicit: we demand no additional money. We stand by our commitments," Mr Samaras told German tabloid Bild in an interview published on Wednesday. |
| "But we have to kick-start growth in order to cut our deficit. All that we want is a little 'breathing space' to revive the economy quickly and raise state income." | "But we have to kick-start growth in order to cut our deficit. All that we want is a little 'breathing space' to revive the economy quickly and raise state income." |
| There are also reports that due to the worsening state of the economy, which affects tax receipts and welfare spending levels, Greece may now need to find savings of up to 13.5bn euros, 2bn more than thought. | There are also reports that due to the worsening state of the economy, which affects tax receipts and welfare spending levels, Greece may now need to find savings of up to 13.5bn euros, 2bn more than thought. |
| A government source told our correspondent that Mr Samaras would not press the issue of an extension too hard, fearing it might cause bad blood with the group of lenders that monitors Greece's bailout. | A government source told our correspondent that Mr Samaras would not press the issue of an extension too hard, fearing it might cause bad blood with the group of lenders that monitors Greece's bailout. |
| Speaking to the BBC, Yannis Varoufakis, professor of economics at the University of Athens, said Mr Samaras was "profoundly, deeply and sadly wrong". | Speaking to the BBC, Yannis Varoufakis, professor of economics at the University of Athens, said Mr Samaras was "profoundly, deeply and sadly wrong". |
| "Greece does not need more breathing space. It is not breathing at all." | "Greece does not need more breathing space. It is not breathing at all." |
| He said the solution Europe had implemented to tackle Greece's insolvency crisis was a "very silly one" - providing gigantic loans "on condition of austerity measures that would shrink the national income from which that huge loan would have to be repaid", requiring yet more loans and more austerity. | He said the solution Europe had implemented to tackle Greece's insolvency crisis was a "very silly one" - providing gigantic loans "on condition of austerity measures that would shrink the national income from which that huge loan would have to be repaid", requiring yet more loans and more austerity. |
| Worsening situation | Worsening situation |
| According to Constantine Michalos, president of the Athens Chamber of Commerce, the breathing space Mr Samaras wants is political rather than economic, as having extra time to repay may make the country's problems worse. | According to Constantine Michalos, president of the Athens Chamber of Commerce, the breathing space Mr Samaras wants is political rather than economic, as having extra time to repay may make the country's problems worse. |
| "Whether it is two or three-year extension, that would mean that there is an additional bill in terms of interest," he told the BBC. | "Whether it is two or three-year extension, that would mean that there is an additional bill in terms of interest," he told the BBC. |
| "What is the point of extending the total bill in terms of the total debt, when you haven't got in place the right mechanisms to stimulate the economy, to return to the path of growth that you in need to in order to be able to finance the debt that you are trying to service?" he asked. | "What is the point of extending the total bill in terms of the total debt, when you haven't got in place the right mechanisms to stimulate the economy, to return to the path of growth that you in need to in order to be able to finance the debt that you are trying to service?" he asked. |
| He said it would be "extremely difficult, if not impossible", to find savings of 11.5bn euros in time, as Athens was starting to implement the measures too late. | He said it would be "extremely difficult, if not impossible", to find savings of 11.5bn euros in time, as Athens was starting to implement the measures too late. |
| "Lay-offs [in the public sector] should have started gradually two years ago. | "Lay-offs [in the public sector] should have started gradually two years ago. |
| "Now we need to have 150,000 lay-offs by the end of next year. In terms of social cohesion it is going to be an extremely difficult September coming up," Mr Michalos said. | "Now we need to have 150,000 lay-offs by the end of next year. In terms of social cohesion it is going to be an extremely difficult September coming up," Mr Michalos said. |
| Europe presses ahead | Europe presses ahead |
| Mr Samaras goes on to meet German Chancellor Angela Merkel on Friday, and French President Francois Hollande on Saturday to discuss the issue. | Mr Samaras goes on to meet German Chancellor Angela Merkel on Friday, and French President Francois Hollande on Saturday to discuss the issue. |
| But there is unlikely to be any conclusions until the "troika" - the European Union, the European Central Bank and the IMF - reports on Greece's progress next month. | But there is unlikely to be any conclusions until the "troika" - the European Union, the European Central Bank and the IMF - reports on Greece's progress next month. |
| Eurozone leaders have so far resisted any move to soften the bailout conditions, especially in Germany, where the government is under pressure not to make any more concessions. | Eurozone leaders have so far resisted any move to soften the bailout conditions, especially in Germany, where the government is under pressure not to make any more concessions. |
| "We have clear agreements between the troika and Greece, and Greece has to fulfil these agreements," Michael Fuchs, deputy chairman of the parliamentary group of the governing CDU party told the BBC. | "We have clear agreements between the troika and Greece, and Greece has to fulfil these agreements," Michael Fuchs, deputy chairman of the parliamentary group of the governing CDU party told the BBC. |
| He said it looked as though Greece had not been able to fulfil its promises, such as privatising 50bn-euros worth of state assets. | He said it looked as though Greece had not been able to fulfil its promises, such as privatising 50bn-euros worth of state assets. |
| "If the troika tells us they did what they have to do then of course we will [continue with] the programmes. If not it is very difficult," he said. | "If the troika tells us they did what they have to do then of course we will [continue with] the programmes. If not it is very difficult," he said. |
| But BBC Berlin correspondent Stephen Evans says Germany did have some room for manoeuvre. | But BBC Berlin correspondent Stephen Evans says Germany did have some room for manoeuvre. |
| Publicly, Germany is saying it cannot put money into a bottomless barrel, which is not quite saying that if there is any slippage there will not be any more money, our correspondent says. | Publicly, Germany is saying it cannot put money into a bottomless barrel, which is not quite saying that if there is any slippage there will not be any more money, our correspondent says. |
| The heavily-indebted country has received two massive EU and IMF bailouts - one for 130bn euros this March and one for 100bn euros in May 2010 - to allow it to continue payments on its vast public debt and stay in the eurozone. | The heavily-indebted country has received two massive EU and IMF bailouts - one for 130bn euros this March and one for 100bn euros in May 2010 - to allow it to continue payments on its vast public debt and stay in the eurozone. |
| Are you in Greece? What is your reaction to the bailout talks? Have you been affected by the austerity measures? What are your thoughts on the future of the country? Send us your comments and experiences using the form below. | Are you in Greece? What is your reaction to the bailout talks? Have you been affected by the austerity measures? What are your thoughts on the future of the country? Send us your comments and experiences using the form below. |