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Wednesday, 22 August 2012 - Greek PM seeks breathing space as talks begin |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Video Reuters TV Reuters News Article Comments (0) Video Pictures Editor's choice Our best photos from the last 24 hours.  Slideshow  Follow Reuters Facebook Twitter RSS YouTube Read UK's Prince Harry cavorts naked in Vegas party photos 8:57am EDT Akin still defiant, but leaves door open to quitting Senate race | 12:31pm EDT Syrian army batters parts of Damascus, 47 killed | 11:32am EDT Apple, Samsung make final pitch to jury 9:35am EDT Russia warns West over Syria after Obama threats | 21 Aug 2012 Discussed 138 Obama’s lead over Romney grows despite voters’ pessimism 122 Romney to announce vice presidential choice Saturday 94 Analysis: Are Israelis tough enough for a long war with Iran? Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Rock-carved churches An ancient Ethiopian site is home to 11 churches carved out of the ground and rock.   Slideshow  Longest lived women: Hong Kong Hong Kong women are now the longest-lived women in the world, overtaking a record formerly held by Japan.  Slideshow  Greek PM seeks "breathing space" as talks begin Tweet Share this Email Print Related News Global shares dip, Treasuries rally on Japanese data 12:44pm EDT Wall Street dips on Japan data, Greece meetings eyed 12:28pm EDT Euro little changed; ECB optimism remains 11:45am EDT Oil recovers after U.S. oil inventories decline 11:12am EDT RPT-UPDATE 1-Greek PM hosts Eurogroup chief, begins lobbying effort 2:57am EDT Analysis & Opinion Draghi engineers August lull, but wait for September Why doesn’t Stockton challenge CalPERS in bankruptcy? Related Topics World » Greece » Related Video Reuters Today: let Europe's diplomatic dance begin 3:00am EDT Greek Prime Minister Antonis Samaras addresses a parliamentary group of his party in Athens July 24, 2012. Credit: Reuters/John Kolesidis By Deepa Babington ATHENS | Wed Aug 22, 2012 11:18am EDT ATHENS (Reuters) - Greece's Prime Minister Antonis Samaras started a European charm offensive on Wednesday with an appeal to Germans for more time to meet targets for deficit cuts, but may struggle to make his case in meetings this week with EU leaders. "All we want is a bit of 'air to breathe' to get the economy running and to increase state income. More time does not automatically mean more money," Samaras told Germany's mass-market Bild newspaper, which often mocks Greece's dire finances. "Let me be very explicit: we demand no additional money. We stand by our commitments and by fulfilling all our requirements. We have to crank up growth because that decreases the financial gaps," Samaras added in the interview, which ran hours before he begins talks in Athens with euro zone chief Jean-Claude Juncker. Appointed in June after two tumultuous parliamentary elections, Samaras hopes to persuade Luxembourg premier Juncker that the debt-laden Greek nation has the will to ram through unpopular reforms and deserves more time to do it, without being cut off from European rescue loans. With cash coffers running empty and renewed talk of a Greek euro zone exit without more aid, Samaras is under pressure to convince European leaders that Greece has finally mustered the political courage to make good on commitments in a bailout. Juncker, the most influential European policymaker to visit Athens since the conservative-led government took power on June 20, is expected to tell Samaras bluntly that Greece must carry out promised cuts and that little room for leeway exists. In response to Samaras's comments to Bild, the Dutch finance minister gave a taste of the skepticism among the euro zone's less-indebted northern states towards Greece: "If it concerns delaying reforms and budget cuts, then it is not a good idea," Jan Kees de Jager told reporters. Such messages are likely to be hammered home again to the Greek leader when he travels to Berlin on Friday to meet German Chancellor Angela Merkel and to Paris a day later for talks with French President Francois Hollande. Merkel has already said she and Samaras will not make any decisions during their talks, adding she would wait for a report from lenders on Greece's progress in meeting targets. That report is not expected until late September. Shortly after being elected, Samaras's government promised he would tour Europe to seek two more years to hit targets under Greece's 130-billion euro bailout from the European Union and International Monetary Fund. But faced with a lack of European appetite for cutting Greece more slack, the government has since toned down its rhetoric on the issue and now expects merely to broach the idea during talks this week rather than formally requesting it. "We must first re-establish our relationship with European partners that has been seriously damaged," said a Greek government official, who declined to be identified. "This is most crucial. Talking about certain parameters then comes at a second stage." WRANGLING OVER CUTS Key to restoring credibility will be Greece's attempt to push through 11.5 billion euros of cuts over the next two years as demanded under the bailout - which Samaras's administration has yet to fully piece together after weeks of wrangling. Samaras and his allies have broadly agreed on the measures, but the government is struggling to nail down the final cuts amid howls of protest over plans to slash pensions and put civil servants in a so-called labor reserve before laying them off. "We are trying to find the best possible mix and a fair distribution of pensions," a finance ministry official said. The measures will be presented for approval to the "troika" of officials from the European Commission, European Central Bank and IMF due back in Athens early next month before a verdict in October on whether to keep money flowing to Greece. After his election victory in June averted fears of an imminent Greek euro zone exit, Samaras won a positive initial reception from European governments, relieved that firebrand leftist leader Alexis Tsipras failed to assume power. Tsipras's SYRIZA party, which campaigned on a pledge to abandon the terms of the bailout keeping Greece afloat, said Juncker had turned down a request to meet its young leader. SYRIZA lawmaker Dimitris Papadimoulis called the snub "a massive institutional discourtesy and an insult". "I have the feeling that the leaders of the European Union and the euro zone prefer to talk with those who agree with them, or those they consider convenient," he told Skai television. "Mr. Juncker needs to give an explanation, because from what I see, tomorrow he is free all morning." Juncker's schedule includes a visit to the Acropolis Museum later on Wednesday, where Samaras hosts a dinner in his honor. With power firmly in the hands of Samaras's pro-bailout coalition and SYRIZA relegated to the opposition, a Reuters poll last week showed a rising number of economists now believe Greece will remain in the euro zone. But the country is hugely off track from targets under its bailout and EU officials expect a further debt restructuring will be likely - with the cost falling on the ECB and euro zone governments. Greece blames the slippage on a deeper than expected recession that is now in its fifth year and which Athens has likened to America's Great Depression. Nearly one out of four Greeks are jobless, and thousands of businesses have shuttered since the sovereign debt crisis exploded in 2009. (Additional reporting by Lefteris Papadimas in Athens, Andreas Rinke in Chisinau and Annika Breidthardt in Berlin; Editing by Peter Graff and Alastair Macdonald) World Greece Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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