ATHENS: Prime Minister Antonis Samaras will call for a two-year extension to Greece's austerity programme when he meets Angela Merkel and Francois Hollande next week, a newspaper reported on Wednesday.
Samaras will suggest that public spending cuts be spread over four years instead of two to help the plunging Greek economy return to growth during the talks with the German chancellor and French president, according to a document seen by the newspaper.
The Greek prime minister is to meet in Athens on Tuesday with the head of eurozone finance ministers, Jean-Claude Juncker, before travelling to Berlin to meet with Merkel on Friday and with Hollande in Paris on Saturday.
Greek officials were not immediately available for comment as Wednesday was a public holiday.
Greece's government is currently scrambling to find budget cuts -- amounting to 11.5 billion euros ($14.2 billion) or around five per cent of GDP -- to be implemented in 2013 and 2014 as part of its existing bailout deal with the European Union and International Monetary Fund.
Samaras has made it known since before taking office in June that he favours spreading out the spending cuts demanded by Greece's international creditors, the European Union and International Monetary Fund.
Greek officials have long argued that the magnitude of the cuts demanded in exchange for bailout loans risk pushing the country into such a vicious circle of recession that it won't be able to meet its reform targets.
Preliminary figures show that the Greek economy contracted by 6.2 per cent in the second quarter and expectations are now that it fall by seven per cent overall this year -- its fifth year of recession.
According to the FT the Greek government would need an additional 20 billion euros to cover the budget shortfall in case spending cuts are spread out over an additional two years.
It would not ask the EU for additional bailout funds but would seek to delay repaying rescue loans from 2016 to 2020, tap an existing IMF loan and issuing additional short-term treasury bills, said the newspaper.
Finding the 11.5 billion euros in unpopular cuts has caused strains in Greece's new coalition government, with only about two-thirds of the amount agreed.
With unemployment already at 23.1 per cent, the government is reluctant to carry out job cuts or send public workers on temporary furloughs.
indiatimes.com
Samaras will suggest that public spending cuts be spread over four years instead of two to help the plunging Greek economy return to growth during the talks with the German chancellor and French president, according to a document seen by the newspaper.
The Greek prime minister is to meet in Athens on Tuesday with the head of eurozone finance ministers, Jean-Claude Juncker, before travelling to Berlin to meet with Merkel on Friday and with Hollande in Paris on Saturday.
Greek officials were not immediately available for comment as Wednesday was a public holiday.
Greece's government is currently scrambling to find budget cuts -- amounting to 11.5 billion euros ($14.2 billion) or around five per cent of GDP -- to be implemented in 2013 and 2014 as part of its existing bailout deal with the European Union and International Monetary Fund.
Samaras has made it known since before taking office in June that he favours spreading out the spending cuts demanded by Greece's international creditors, the European Union and International Monetary Fund.
Greek officials have long argued that the magnitude of the cuts demanded in exchange for bailout loans risk pushing the country into such a vicious circle of recession that it won't be able to meet its reform targets.
Preliminary figures show that the Greek economy contracted by 6.2 per cent in the second quarter and expectations are now that it fall by seven per cent overall this year -- its fifth year of recession.
According to the FT the Greek government would need an additional 20 billion euros to cover the budget shortfall in case spending cuts are spread out over an additional two years.
It would not ask the EU for additional bailout funds but would seek to delay repaying rescue loans from 2016 to 2020, tap an existing IMF loan and issuing additional short-term treasury bills, said the newspaper.
Finding the 11.5 billion euros in unpopular cuts has caused strains in Greece's new coalition government, with only about two-thirds of the amount agreed.
With unemployment already at 23.1 per cent, the government is reluctant to carry out job cuts or send public workers on temporary furloughs.
indiatimes.com
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