PM Samaras says Greece need more time for cuts

Before talks of its bailout, Prime Minister Antonis Samaras has asked for more time to execute harsh spending cuts.

The issue is whether or not Greece has done enough to warrant getting its next €31.5 billion payment. If funds are not unlocked Greece will default on its public debt and may have to leave the euro. There is much pressure for Mr Samaras to show that Greece can fulfil its agreement to cut public spending by €11.5 billion within the next two years, which is what is needed to qualify for the next payment.

German tabloid Bild reported that Mr Samaras said in an interview that Greece does not demand additional money and stands by its commitments. He added by saying that in order to cut their deficit they have to kick-start growth, and that they just need a bit of breathing space in order to quickly revive the economy.

Professor Yannis Varoufakis of the University of Athens told the BBC that the Prime Minister was very much wrong, that Greece does not need breathing space as it is not breathing at all. He thinks that Europe’s solution to get involved with the crisis in Greece was not sensible. The country would need more loans to pay off the loans that they already have.

Mr Samaras will meet German Chancellor Angela Merkel and French President Francois Hollande later this week. In the meantime, Greece’s progress is expected to be reported next month. German Foreign Minister Guido Westerwelle will still go ahead with the terms already in place.

Greece has received two massive bailouts already in order to stay in the euro zone; one for €130 billion and one for €100 billion.