Greek PM seeks consensus on cuts

Greek prime minister George Papandreou has invited Greek political party leaders to meet tomorrow in a fresh bid to reach consensus…

Greek prime minister George Papandreou has invited Greek political party leaders to meet tomorrow in a fresh bid to reach consensus on austerity measures needed to exit a debt crisis.

EU policymakers have warned he must get broad political backing for debt-cutting measures to get the extra money Greece needs to plug funding shortfalls, demanding the kind of consensus achieved in crisis-hit Ireland and Portugal.

"The president's office told us that the prime minister has asked for this meeting and that the finance minister and the foreign minister will also be present," a spokesman for the Left Coalition party said.

A spokesman for main opposition conservative New Democracy said leader Antonis Samaras would attend the meeting.

Government officials were not immediately available for comment. State TV Net said the meeting would be chaired by Greek president Karolos Papoulias.

Opposition parties have so far rejected the latest austerity policies aimed at pulling Greece out of a severe debt crisis, saying they will stifle an economy already deep in recession.

The Kathimerini daily reported earlier today, without naming sources, that the prime minister was considering reshuffling his cabinet to include officials suggested by the opposition if it backs his austerity policies.

Athens kick-started a stalled privatisation programme on Monday and promised tougher austerity measures and tax hikes to meet EU/IMF conditions for the release of a €12 billion loan tranche in June, vital to keep Greece from defaulting.

But Mr Samaras refused to offer his support.

Reuters