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Deal near for Greek economy

Summary

30 April 2010

Senior officials from Greece, the International Monetary Fund and the European Commission are trying to put the finishing touches to a deal to rescue the Greek economy.

Reporter:

Gavin Hewitt

Report

As the talks over a giant bail-out deal for Greece reached a critical stage the government in Athens is coming under intense pressure to implement new spending cuts. The IMF and the EU are discussing loaning Greece at least 40 billion pounds this year. But they want to see further measures to reduce the deficit.

Greek trade union officials expressed outrage at the conditions after a meeting with the Greek prime minister. They claim Greece is being asked to make cuts of over 20 billion pounds over the next two years. The unions have now called a general strike for next week. Last night tear gas was fired at hundreds of demonstrators who were protesting at the bail-out plan.

The expectation that a rescue for Greece was just days away helped bring some calm to the financial markets. But the mood in Athens is increasingly against any bail-out and the Greek prime minister George Papandreou has said that the country is in a battle for survival.

Gavin Hewitt, BBC News