Greece agrees to deeper public spending cuts


The Greek government has agreed to a further cut in public spending of €11.5 billion (£9 billion; $14 billion) in 2013 and 2014.)

The agreement came after the country’s lenders, the IMF and EU had insisted that further cuts in public spending were required. The country, which is being led by Antonis Samaras’ New Democracy government, relies on the support of the socialist PASOK party led by Evangelos Venizelos and the Democratic Left party led by Fotis Kouvelis.

Following a lengthy meeting last night all three leaders agreed to the new requirements although both minority leaders stated that cuts should not involve “unfair, across the board measures”.

The Press Association are reporting Mr Venizelos as saying that “If the prime minister believes that the immediate adoption of all the 11.5 billion euros measures will then allow him to negotiate (with creditors) and that only that will secure payment of the next loan instalments and the country’s position in the euro, I am obliged to accept his estimate. We will not lead the country to elections.”

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