Post date: Feb 05, 2012 6:39:5 PM
ATHENS, GREECE (FEBRUARY 5, 2012) (REUTERS) - Greece's Prime Minister Lucas Papademos is scrambling on Sunday (February 5) to try and prevent cash-strapped Greece from sinking into a chaotic default in March when big bond redemptions are due.
Greek Prime Minister Lucas Papademos calls in the country's political leaders as he scrambles to sign off a 130 billion euro rescue package in a bid to avoid a chaotic default and possible exit from the euro.
On Saturday Finance Minister Evangelos Venizelos said Athens was on "a knife edge" and had only until Sunday night to clinch a deal with lenders and political leaders on a 130 billion euro rescue.This morning Papademos met with the so-called troika monitors from the European Central Bank, European Union and International Monetary Fund to try and agree on at least a preliminary deal of reforms included in the bailout.
The talks have failed after days to resolve the thorny issue of cutting wages and spending.
As the troika monitors left the building, Greek's political party leaders descended on the prime minister's office.
Convincing party chiefs in Papademos' own national unity coalition to back the reforms demanded by the lenders is perhaps the even tougher task and he runs the risk of ruining their chances at national elections expected in April.
The conservative New Democracy and the far-right LAOS party in particular have staunchly opposed further wage and spending cuts, arguing that risks pushing Greece into an even deeper recession and imposing more pain on struggling Greeks.
Before going into the meeting, LAOS party leader, George Karatzaferis echoed the words of former German chancellor Helmut Schmidt who warned in December Germany needed to take care not to alienates its EU partners through its handling of the eurozone crisis.
"I come with the hope that I won't have to repeat what former (West) German chancellor Schmidt said a few days ago," Karatzaferis said.
Euro zone ministers bluntly told Venizelos on Saturday they were ready to abandon Greece if it had no proof Athens could push through painful cuts.
Greece complains the troika has stubbornly refused to yield on demands to cut the minimum wage level, axe holiday bonuses and fire public sector workers.