Sunday Deadline Passes As Talks Will Continue Monday ....

Lengthy and difficult negotiations

5 Feb 2012

Far-right leader George Karatzaferis, conservative party leader Antonis Samaras, Prime Minister Lucas Papademos and Socialist leader George Papandreou meet at Maximou mansion in Athens February 5, 2012. A five-hour meeting between prime minister Lucas Papademos and the leaders of the three parties supporting the government ended without agreement on Sunday.   Pasok leader George Papandreou, main opposition New Democracy party leader Antonis Samaras and Popular Orthodox Rally (Laos) party leader George Karatzaferis failed to reach agreement with Papademos concerning the demands of the EU-IMF troika for private-sector wage cuts, further pension cuts, large-scale firing of public-sector staff and major downsizing of the public sector.   In statements after he emerged from the meeting, Karatzaferis indicated that it will most likely continue on Monday and said he did not want to contribute to the start of "a revolution caused by pauperisation" that would then sweep all of Europe.   Main opposition New Democracy leader Antonis Samaras made no statements as he left the meeting but indicated the deadlock reached during the meeting during a brief statement to television cameras when he returned to ND's headquarters.   "For the first time, a negotiation is taking place. The country cannot stand more recession. I am fighting with every means to prevent this," he said, confirming that the negotiations will continue on Monday. An announcement issued by the prime minister's press office later on Sunday night also confirmed that his talks with the party leaders will continue on the following day.   The announcement claimed there was agreement on a series of fundamental issues concerning the deal on a new economic programme demanded by the troika in order to release any further financial assistance to Greece.   Among these it listed further measures within 2012 to reduce public spending by 1.5 percent of GDP, action to ensure the viability of supplementary pension funds, measures in various areas to tackle a lack of competitiveness, such as the reduction of salaries and non-wage costs in order to boost employment and economic activity and, finally, the recapitalisation of banks combined with measures to ensure the promotion of public interest and their business autonomy.   Papademos and the party leaders will meet again on Monday to complete talks on the content of the programme, the announcement added.     The meeting between prime minister Lucas Papademos and the leaders of the three parties that support his government, George Papandreou, Antonis Samaras and George Karatzaferis begun at 15:30 Sunday and ended at 20:30.   Earlier, the prime minister held another meeting with representatives of the country's lenders, in the presence of Evangelos Venizelos and Yiorgos Koutroumanis.   The prime minister and the three party leaders were joined by Institute for International Finance (IIF) managing director Charles Dallara and the IIF's Jean Lemierre, who together with Dallara are the steering committee of the Private Creditor-Investor Committee for Greece, at about 19:00.   The only statements during the parties' leaders arrival at Maximos Mansion came from the Laos party president. "I come here hoping that I won't have to repeat what Helmut Schmidt said a few days ago," said George Karatzaferis.   The former Chancellor of Germany had sharply criticised Angela Merkel recently for her stance towards Greece. Addressing the German Economic Forum in Hamburg, Schmidt said: "It would be wiser not to insult the Greeks and to refrain from sacking ten million people along with their former governments and then lashing them. It is way easy for a fat German, with a population of 80 million, to corner the helpless Greek." Schmidt concluded that: "If the Europeans fail to save Greece, then to hell with them." According to a report by the radio station "Vima 99.5" following the meeting of political party leaders, the Pasok president will convene a meeting of the party's political council. (AMNA, aw)