An IMF representative in Greece Bob Traa said:"The ball is in the Greek court. Implementation is of the essence," The IMF is demanding additional savings to cut the deficit to a more manageable level.
This would include axing even more jobs, cutting pay levels, and reducing pensions. Greece is noted for failure to collect taxes and so that area should be improved as well..
Socialist Prime Minister George Papandreou canceled a trip to Washington and the United Nations at the last minute. He then returned home in response to the crisis. Greek media cited 15 austerity measures lenders are demanding in order that Greece recieve the next tranche of aid money.
The demands drastically increase the sacrifices Greek state worker must make. Another 20,000 state workers are to be dismissed. Salaries of state workers will be frozen or even reduced and pensions as well. The oil tax is to be increased and unprofitable state organizations to be shut down. Privatization should be speeded up and health spending cut. All of this is likely to cause the economy to shrink even further as well as causing social unrest.
The Finance Minister Evangelos Venizelos said the economy was set to contract by 5.5 percent this year after 4 percent in 2010. Many economists and investors believe Athens will have to default on its debt mountain -- more than 150 percent of gross national product -- within months in spite of any new cuts. We can expect more demonstrations and a further weakening of the Greek economy in the near future.