By: Sara Patterson
After seven difficult hours of negotiations on Thursday, Greek leaders were unable to find a compromise through which they could sign a new bailout and austerity program to save the struggling nation. Upon conclusion of the talks, Prime Minister Lucas Papademos expressed his hope that they would find the proper solution in the ensuing hours.
In the meanwhile, Finance Minister Evangelos Venizelos headed off to Brussels for the Euro zone meeting without the ability to confirm the country’s bailout plan. The passing of the Greek bailout plan is critical to ensure the sustainability of the country, and while it’s been a long and frustrating road, the politicians involved understand that the country has few alternatives to such a plan. Thus, a glimmer of hope remains that the bailout will eventually pass.
The EU and IMF are currently offering Greece a package including new rescue funds which are vital to help Greece avoid default when its debt repayments come due on March 20, as well as a bond swap with private creditors which will ease the country’s huge debt problem. To ‘earn’ this deal, Greece must accept conditions which will compromise the standard of living for many of its citizens, including cuts in pension funds and other monetary sources. This concession is one place in which the bailout talks hit a snag, as George Karatzaferis of the small LAOS party expressed severe reservations about these consesions.
Panos Beglitis, a spokesman for the PASOK which is in the coalition with LAOS, publicly announced that leaders had agreed to a reduction in the minimum wage by 22 percent, but that other issues still needed to be resolved.