No Resolution Reached at Greek Austerity Summit
Posted on May 27, 2011
A group of Greek leaders fell short of reaching an agreement on Prime Minister George Papandreou’s austerity plan by week’s end, putting Greece on shaky ground in terms of the country’s chances of receiving more bailout funds from the IMF, according to the BBC.
Mr Papandreou, a Socialist, had been trying to secure cross-party agreement for further cuts.
The chairman of the eurozone finance ministers has warned the IMF may not extend further bail-out payments.
Luxembourg Prime Minister Jean-Claude Juncker said IMF rules might stop it paying because Greece could not guarantee its solvency for the next year.
Mr Papandreou’s government began a programme of privatisations on Thursday, but Mr Juncker has said the privatisation plan needs to be more ambitious.