Greece has gone forward with talks on a new rescue loan. The government came under increasing pressure over claims that it had a secret plan to prepare for a euro exit that involved accessing citizens’ personal tax data.
The talks in Athens aim to thrash out the terms of the deal worth about 85 billion euros ($94 billion) over three years before August 20, when Greece must make a debt payment that it cannot afford without new loans.
Diplomats from Greece’s international creditors held a second day of preparatory talks with Greek officials, ahead of higher-level negotiations later this week on the country’s new multi-billion euro lifeline.
It will be the country’s third bailout in more than five years. So far, Greece has received about 240 billion euros from the European Union and the International Monetary Fund.
In return, the austerity deepened a sharp recession, and caused unemployment to swell to a peacetime record.
This week’s talks will include issues such as pensions and labour market reforms. The government is being asked to cut early retirement, raise retirement ages, streamline the pension system and ease restrictions protecting workers.
Prime Minister Alexis Tsipras has reluctantly accepted the reforms in principle even though he has repeatedly said he doesn’t agree with them abandoning the staunchly anti-austerity policies that brought his Syriza party to power six months ago.
The U-turn was necessary after talks with bailout creditors came very close to collapse and Greece was threatened with exit from the euro currency union unless it agreed.
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