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Greek coalition proposes easing bailout terms

25 June 2012 08:28 (UTC +04:00)

Baku â€“ APA-Economics. Greece’s new coalition government has proposed an extension to the deadline for it to reduce its budget deficit by at least two years, to 2016, APA reports quoting BBC.

In a policy document, the government said its aim was for the fiscal target envisaged by the bailout deal to be met without further cuts to salaries and pensions. Greece is under huge international pressure to fulfil bailout terms. Polls last week ended a two-month deadlock over its implementation. Pro-bailout parties gained a narrow majority in parliament, despite widespread public anger at austerity measures stipulated in the bailout.

Meanwhile Prime Minister Antonis Samaras is recovering after a successful eye operation on Saturday morning. The routine surgery was to repair a damaged retina. Mr Samaras is expected to leave hospital on Sunday. New Finance Minister Vassilis Rapanos is also in hospital after apparently fainting on Friday. His condition is said to be "stable and improving".

He was originally due to be sworn in on Saturday. The document was published following agreement on policy goals between the coalition partners New Democracy, Pasok and Democraftic Left, and precedes a confidence vote in parliament. It includes provision for "an extension to the period for the fiscal adjustment by at least two years, so that the fiscal target is met without further cuts in salaries and pensions".