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Greece braces for more cuts

Thursday, August 02, 2012 - 01:49

Aug. 2 - Greeks react to new spending cuts after government coalition leaders clinched a deal on 11.5 billion euros of austerity demanded by the country's lenders. Hayley Platt reports.

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It didn't make good reading - once again Greeks face the prospect of more spending cuts. After weeks of negotiations politicians have agreed a further 11.5 billion euros of austerity measures. They're under pressure to meet the terms of their 130-billion euro rescue package agreed with the EU and IMF last March. But the country has already been hammered by tax hikes, jobs cuts and wage reductions. And some are wondering if they'll even be implemented. (SOUNDBITE) (Greek) ATHENS RESIDENT GEORGE KOUVEOS, 41, SAYING: "I don't believe this will be a solution - I don't believe the cuts will be implemented or that things will go forward." (SOUNDBITE) (Greek) CIVIL ENGINEER ANNA KAKAVA SAYING: "I believe the cuts will be painful for many people, but what must be done, must be done. We can't just sit around talking about it any more, this has to end." There are fears more austerity will damage an already devastated economy. The government says it will try and protect the mots vulnerable from the new reforms. But Greece's Development Minister says they are determined to implement them, regardless of the political cost. SOUNDBITE: Greek Development Minister Kostis Hatzidakis, saying (Greek): "Our priority is to keep Greece in the euro, our priority is to keep Greece standing on its feet, our priority is for the structural reforms to proceed, this is what we will focus on." But many are sceptical about Greece's ability to stick to their promises after previous failures to do so. So-called Troika inspectors from the EU and IMF have been in Greece for more than a week trying to make sure they deserve their next instalment of cash. And it's not their only test - later this month Greece must find 3.2 billion euros in bond payments. Hayley Platt, Reuters.

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Greece braces for more cuts

Thursday, August 02, 2012 - 01:49