The eurozone and Greece face their “most critical week” as they battle to reach a lasting solution to the debt crisis that has shaken the European currency, Greece Prime Minister George Papandreou said on Monday.
The week ahead “will determine the fate of the eurozone”, Papandreou said ahead of a meeting with President Carolos Papoulias, warning of prolonged “insecurity” unless definitive decisions are taken at a European Union (EU) summit on Sunday.
Greece has been kept waiting for two months for a slice of bankruptcy-saving funds, part of a €110-billion ($150-billion) loan from the European Union and the International Monetary Fund contracted last year.
Accused by its peers of dragging its feet over tough economic reforms promised in return for the money, the Greek government has gone into spending cuts overdrive this past month, pushing through new austerity legislation that has caused wide protests.
A two-day general strike will be held on Wednesday and Thursday against the cuts.
Parliament is scheduled to vote on Thursday on a bill including collective wage amendments, a new civil service salary system and temporary layoffs for thousands of public sector staff.
A number of government deputies have threatened to oppose the bill, but the government has repeatedly warned that failure to pass the legislation would prompt Greece’s peers to block the release of loans and cause a state payments freeze.
“We must understand that we are in this battle together,” Papandreou said after his meeting with Papoulias. “We must show a united front … to obtain the best possible result [at the EU summit] on Sunday.” — AFP