Greece

PM warns of disorderly default


Published

Interim prime minister Lucas Papademos has told union and business leaders that unless there are substantial wage cuts then Greece is likely to fall in to a disorderly default in March.

March is the crucial month because $18.7 billion worth of bonds that come up for re-financing on 12th March. Currently the country is not meeting the agreement of the last EU/IMF bailout and unless a strategy is brought in to play to reduce costs then funds may be withheld.

The prime minister wants to lower the minimum wage and reduce the two months worth of holiday bonuses which the Greeks traditionally receive. The General Confederation of Greek Workers (GSEE) have rejected the idea.

Meanwhile, former prime minister and leader of the Panhellenic Socialist Movement (PASOK), George Papandreou has said that he will be standing down as leader of the party and will not be contesting the next general election.

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