Last minute deal in Greece

Papademos, Greek Leaders Agree on Deal Framework

Bloomberg, 6 February, 2012

Greek Prime Minister Lucas Papademos secured a general agreement on budget-cutting measures demanded by international creditors amid continued concern that political leaders may object to some of the points needed for the 130 billion-euro ($171 billion) rescue package.

Leaders of the three political parties supporting Papademos’s interim government agreed with him in a five-hour meeting yesterday to make additional reductions this year equal to 1.5 percent of gross domestic product, according to an e- mailed statement from the premier’s office in Athens. The four men also agreed on a framework for bank recapitalizations, ensuring the viability of auxiliary pension funds and for measures to reduce wage and non-wage costs to boost competitiveness.

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