Greek coalition partners talks postponed for a day

Page last updated at 05:56 GMT, Monday, February 6, 2012 - 10:56 EST

The Seattle Times:

Crucial austerity talks set for late Monday between Greece's coalition party leaders are due to be pushed back for a day, the Prime Minister's office said, despite strong pressure from the European Union for a speedy agreement so that the country can avoid a default on its debt.

A spokeswoman for the Prime Minister's office told the AP the delay is to allow completion of separate talks between Prime Minister Lucas Papademos and representatives of Greece's bailout creditors Monday.

Leaders of the three parties in Papademos' coalition publicly oppose steep cuts in private sector pay demanded by the eurozone and International Monetary Fund, but their backing is needed for the government to reach a deal for a euro130 billion ($170 billion) bailout.

The euro130 billion ($171 billion) bailout deal is vital for Greece to avoid bankruptcy next month as it cannot cover a euro14.5 billion ($19.1 billion) bond repayment due March 20 without the rescue funds.

The Prime Minister's spokeswoman spoke on customary condition of anonymity.

Earlier Monday, European Commission spokesman Amadeu Altafaj Tardio said Greece is already "beyond the deadline" to end the talks and should reach conclusions "around now."

Read the whole story: The Seattle Times