Greek PM In Crucial Meeting With Party Leaders

Greece's Prime Minister Lucas Papademos was on Sunday still scrambling to try and prevent cash-strapped Greece from sinking into a chaotic default.

 

On Saturday Finance Minister Evangelos Venizelos said Athens was on "a knife edge" and had only until Sunday night to clinch a deal with lenders and political leaders on a 130 billion euro rescue.

 

The default would take effect in March when big bond redemptions are due.              

 

This morning Papademos met with the so-called troika monitors from the European Central Bank, European Union and International Monetary Fund, to try and agree on at least a preliminary deal of reforms included in the bailout.              

 

The extensive talks have failed to resolve the thorny issue of cutting wages and spending.   

 

As the troika monitors left the building, Greece's political party leaders descended on the prime minister's office.

 

Convincing party chiefs in Papademos' own national unity coalition to back the reforms demanded by the lenders is perhaps the even tougher task.              

 

The conservative New Democracy and the far-right LAOS party in particular have staunchly opposed further wage and spending cuts.                    

 

Euro zone ministers said bluntly on Saturday they were ready to abandon Greece if it had no proof of Athens could push through painful cuts.              

 

Greece complains the troika is stubbornly maintaining its demands to cut the minimum wage level, axe holiday bonuses and fire public sector workers.