Greek Prime Minister Antonis Samaras’ hopes of going to a European Union meeting on Oct. 18 with a finalized package of $17.45 billion in spending cuts and tax hikes imposed mostly on the country’s workers, pensioners and the poor seemed to be dashed after Finance Minister Yiannis Stournaras said he doubted an agreement could be reached with the country’s international lenders before then.
Stournaras said it was unlikely his talks with the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) would be concluded by then, putting a crimp in Samaras’ hopes of getting them to quickly release a $38.8 billion installment, the last in a first series of $152 billion in rescue loans. A second bailout, for $172 billion, is also on hold until Samaras’ uneasy coalition gets the sign-off from the Troika for more austerity measures.
Stournaras said the talks, which have been dragging on for months over $3.2-$4.65 billion in disputed cuts in the 2013-14 budget would almost certainly go on past the meeting date in Brussels. Asked hether there can be a deal before that, Stournaras said: “We’re trying, but I don’t think so.”
Greece has depended on bailouts since losing access to bond markets in 2010. The cash payments are conditional on Athens sticking to a strict debt reduction program, but without the rescue monies, Greece will be unable to pay its workers and pensioners and could face being forced out of the Eurozone of the 17 countries using the euro as a currency and fall into catastrophe.
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