Greece to wring out additional $428 mln in budget cuts

PanARMENIAN.Net - The Greek government rushed on Tuesday, February 14 to wring out another 325 million euros ($428 million) in budget cuts to satisfy euro zone finance ministers mulling whether to sign off on a rescue package to save the country from a chaotic default, Reuters reported.

Squeezed between skeptical European capitals and deep anger in Greece, political leaders must also produce written commitments to stick to the terms of the 130 billion euro ($172 billion) bailout before the ministers meet on Wednesday.

A government official said the cabinet had already a proposal on the table and that Prime Minister Lucas Papademos would chair a session of the government at 3 p.m. (1300 GMT) Greek lawmakers endorsed another 3.3 billion euros in cuts in wages, pensions and jobs on Sunday despite unrest on the streets of the capital, Athens.

The violence was the worst in years, with dozens of buildings set ablaze, damaged or looted. But the bill left unexplained 325 million euros of cuts that the European Union and International Monetary Fund now want clarified before they sign off on the bailout.

There was no immediate sign that political leaders would put pen to paper to guarantee they will implement the terms of the bailout before and after an election expected in April.

There is growing doubt among Greece's foreign lenders that the country - threatened by deepening social turmoil - is willing to and capable of seeing through a second round of punishing austerity since 2010.