ATHENS, June 23: Greece's new government on Saturday said it wanted to review several austerity measures enacted for rescue loans and bargain for a two-year fiscal adjustment extension as it prepared for an EU-IMF audit.

A policy document released by the conservative-led coalition said efforts to “revise” Greece's EU-IMF bailout deal in talks with creditors starting on Monday include “the extension of the fiscal adjustment by at least two years”, to 2016.

The aim would be to meet fiscal goals “without further cuts to salaries, pensions and public investment” and new taxes, it said, announcing a freeze on further civil-service layoffs, sales-tax cuts and longer unemployment benefits.

“The aim is to avoid layoffs of permanent staff, but to economise a serious amount through non-salary operational costs and less bureaucracy,” the three-party coalition document said.

Under its loan agreement, Greece had promised to reduce the state payroll by 150,000 civil servants by 2015, including 15,000 this year.

The new government said it also wanted to review minimum-wage cuts and measures taken earlier this year to facilitate private-sector layoffs, arguing that collective labour agreements would “return to the level defined by European social law” and what Europeans have agreed on.

It said employers and unions should be allowed to set the private-sector minimum wage, which was cut by 22 per cent to 586 euros ($736) in February amid additional austerity measures taken to clinch a new rescue deal.

The blueprint is designed to reduce anger in Greece towards the austerity policies of the EU-IMF loan agreement, which are deemed to have deepened a recession now continuing for a fifth year.

Over a quarter of Greece's workforce — 1.12 million — are jobless according to official figures.—AFP

Opinion

Editorial

Sustainable path?
Updated 13 Jun, 2026

Sustainable path?

The FY27 budget is the first clear signal that the government is ready to transition from stabilisation to growth.
Prioritising education
13 Jun, 2026

Prioritising education

THOUGH the improvement in the country’s literacy rate may be slight, as highlighted by the Economic Survey, it ...
Poverty’s rise
13 Jun, 2026

Poverty’s rise

AS attention turns to the government’s plans for the coming fiscal year, one set of figures deserves particular...
A difficult story
Updated 12 Jun, 2026

A difficult story

Unless productivity becomes the dominant target of economic policy, Pakistan will continue to oscillate between crises and fragile recovery.
Rough waters
12 Jun, 2026

Rough waters

AMONGST the key potential triggers for fresh conflict in South Asia is water. The Indian state is behaving in an...
Politicised football
12 Jun, 2026

Politicised football

ALMOST three-and-half years since Lionel Messi led Argentina to FIFA World Cup glory, the latest edition of...