Bailout: Greece's ruling coalition couldn't agree on cuts

Malaysia Sun Thursday 9th February, 2012

ATHENS - Greek Prime Minister Lucas Papademos has failed to garner support from his coalition partners for new austerity measures, necessary for a crucial 130 billion euros European Union bailout package the second for Greece.

Papademos met leaders from three parties but failed to cut any ice with them after marathon talks lasting for nearly seven hours.

The main stumbling block in the talks between ruling partners was the proposed pension cuts worth 300 million euros.

"There was broad agreement on all the programme issues with the exception of one, which requires further elaboration and discussion. This discussion will take place immediately, so as to conclude the agreement in view of the Eurogroup meeting," said a statement from the prime minister's office.

But Finance Minister Evangelos Venizelos left for Brussels to meet top EU officials amid hopes to rescue the financial agreement without which Greece would not be able to avoid an imminent debt default as Athens faces loan repayments of 14.4 billion euros to private lenders by March 20.

Venizelos urged coalition leaders to resolve their differences and warned that the nation's "survival over the coming years" was highly dependent on the EU rescue plan and a related debt-relief agreement with private creditors.

"It will determine whether the country remains in the eurozone or whether its place in Europe will be endangered," the finance minister said.

In Brussels, Venizelos will be meeting with finance ministers from the 16 other nations of the bloc that use the single currency.