Top officials from Greece’s international creditors were meeting Saturday with Greek ministers to discuss a measure to shrink the swollen public sector by partially laying off civil servants.
Finance Minister Evangelos Venizelos and Administrative Reform Minister Dimitris Reppas met auditors from the EU, the International Monetary Fund and the European Central Bank, who have to determine whether Athens qualifies for another slice of bail-out cash.
Greece is racing against the clock to finalise a scheme that seeks to place 30,000 civil servants temporarily in a “labour reserve”, in order to meet fiscal requirements set out by the creditors for 2011 and 2012.
The auditors are pressing for reduction of the public sector, but the government faces a major obstacle as the Greek constitution protects civil servants from dismissal.
Civil servants close to the retirement age would also be placed in the reserve on a reduced wage, but the daily Kathimerini said Saturday the idea had been rejected by the auditors.
Assuming the problems can be thrashed out in Saturday’s talks, the issue will be taken to an emergency cabinet meeting Sunday chaired by Prime Minister George Papandreou, where the draft 2012 state budget will also be on the agenda.
(source: AFP)
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