Despite new evidence of a deteriorating economy, Greece said on Monday, Feb 6, that it would cut 15,000 state jobs this year as part of new austerity measures it intends to adopt to secure new debt agreements from international lenders, The New York Times reported.
Athens is racing to push through economic changes that it hopes will persuade its private sector creditors to grant easier debt repayment terms and will prompt Europe to release 130 billion euros, or $171 billion, in the next round of bailout money it needs to avoid defaulting on bond payments due in March.
Negotiations with its creditors were continuing Monday, even as the austerity measures already in place were making it increasingly difficult for the Greek economy to outrun the country’s mounting debt burden.
Greece’s debt rose to 159.1 percent of gross domestic product in the third quarter of 2011, from 138.8 percent a year earlier, according to data released Monday by Eurostat, the European Union’s statistical agency.
That rising debt ratio, if it continues, will make it hard for Greece to meet the 120 percent level for the year 2020 that is one of the targets for Greece’s European bailout program.
Under its new prime minister, Lucas D. Papademos, an economist and former vice president at the European Central Bank, the Greek government has promised to cut 150,000 jobs by 2015 from the public sector, which employs an estimated 750,000 people.
