TIME is running short in the Greek negotiations, and its politicians must make up its mind fast, German leader Angela Merkel said yesterday.
But instead of concluding talks last night as planned, the latest meeting of Greek politicians with technocratic Prime Minister Lucas Papademos was postponed until today.
“I honestly can’t understand how additional days will help,” Merkel said. “A lot is at stake for the Eurozone.”
Papademos said on Sunday that party leaders had accepted the need for additional spending cuts worth 1.5 per cent of GDP in 2012, improving competitiveness through cutting wages and non-wage labour costs, and the recapitalisation of banks.
However, details of reforms still need to be finalised, and protracted talks with private sector bondholders are still not finished despite numerous “deadlines” passing.
The debt and bailout talks all need to be successfully concluded before 20 March when €14.5bn of debt repayments are due, which the government may not be able to pay.
Meanwhile European Council President Herman van Rompuy told Greece and other EU countries they need to take greater responsibility for their actions and consider their impact on other members.
