Labor talks in Greece as debt deals near

AP News
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Posted: Feb 02, 2012 5:28 AM
Labor talks in Greece as debt deals near

Unions and employers are to resume talks in Greece as the country scrambles to push through more cost-cutting reforms and conclude massive debt deals with private and rescue creditors.

The talks are due to start at 2:00 p.m. (1200GMT) Thursday, with debt inspectors from the European Union and International Monetary Fund pressing Greece to slash labor costs in the private sector.

Greece is hoping to clinch an agreement for a second bailout worth euro130 billion ($172 billion) in the coming days with eurozone countries and the IMF, and a related deal with private creditors to write off euro100 billion from the national debt.

Without those agreements, Greece faces bankruptcy next month as it is unable to cover a euro14.5 billion bond repayment due on March 20.