Greece pledges more cuts in public sector

GREECE promised more cuts to its bloated public sector yesterday and held a second conference call in two days with its international lenders, whom it must convince to extend more loans to prevent its coffers running dry next month.

Anger over austerity among ordinary Greeks is matched by bailout fatigue among north European creditor countries, especially Germany, Finland and the Netherlands, which are taking the toughest line on strict conditions for more money.

The European Union and International Monetary Fund (IMF) are increasing pressure on Athens to deliver on pledges to slash its deficit.

The IMF has told Athens to cut the public workforce and payroll, shut inefficient state entities, fight tax evasion and sell billions of euro of state property to plug its budget gap.

The government has introduced painful new taxes on wages and property and cut public sector pay and pensions, but had baulked until yesterday at sacking more civil servants, a key component of the governing Socialist party’s electorate.

Deputy government spokesman Angelos Tolkas told NET radio: “Our primary target is to shrink the state.

“The Greek state budget has stopped paying the wages of some 200,000 civil servants in the last two years. And we are continuing,” Tolkas said.

Public protests against the cuts have dwindled since early this year when Athens saw bloody clashes between police and rioters, but frustration is growing again as the crisis worsens.

“They have crippled us,” said 44-year-old public sector employee Niki Playannakou, a single mother said, . “.... we don’t see things improving. How much can a family take?”

Last evening, Finance Minister Evangelos Venizelos began a second phone call in as many days with EU and IMF inspectors — known as the Troika — on austerity measures.

Greek government officials said a first call on Monday had been “productive and substantive” and they expected to clinch the release of an €8 billion aid tranche despite consistently missing the conditions that were set.

The IMF/EU mission had abruptly left Greece on September 2 in a disagreement over the extent of the slippage, and what Athens must do to make good on its pledges.

Officials close to the Troika said the IMF/EU monitors would need to return to Athens to seal any agreement, but yesterday’s talks could set out the timeframe and scope of their visit.