The prime minister of Greece is all set to hold a referendum to cut back expenses in his financially hit country to obtain a bailout from the international agencies.
The Prime Minister George Papandreou unveiled his program to obtain the consent of his Socialist party members and the public for not showing any results of the cutbacks.
The public has come out in the streets to protest against further cuts on expenses and imposition of additional taxes.
The remedial measures require a cut ofeuro6-4 billion ($9.34 billion) in the current year and a further cut of euro 22billion ($32.11) through 2015 in order to secure money from last year’s euro 110 billion (4160.56 billion) bailout from the IMF and other countries using euro.
The government intends to carry out a privatization drive to secure euro 50 billion ($72.98 billion). It appears that all this may still not prevent it from being termed as a defaulting country.
The EU and IMF say the release of euro 12 billion ($17.52 billion) is subject to the reforms.
Papandreou’s PASOK party with 6 seats in the 300 member Parliament faces rebellion from within. 16 PASOK deputies seeking clarifications on the intended austerity measures have registered a written demand.
Despite a strong dissent the prime ministers expects a favorable outcome, which requires a minimum of 115 votes.
The Deutsche Telecom intends to buy 10% of OTE telecom shares, raising its stakes to 40%. The government already disposed its stakes to the German enterprise in2008. This deal would secure euro 400 million ($584 million) in the stock price.
The government will be left with 10% of the shares in the OTE whose workers have objected and announced a public strike on Thursday.
There is a strong wave of protest in form of public rallies on the Spanish modeled demonstrations. It’s been 12 days of protests pulling in crowds of 60,000 people in the Syntegra Square as per police estimates at the minimum.
The peaceful rallies are a departure from the political and trade union led demonstrations, they are against the austerity drive.
