Fears are growing that Greece will miss its deficit targets despite plans to axe 30,000 civil service jobs by the end of the year.The Greek cabinet will meet today to finalise details of drastic cuts aimed at saving £6.9billion so it can receive the final installment of its 2010 bail out.
Concerns that Greece faces a worse-than-expected recession saw the FTSE open 2.5 per cent down and Asian markets also fell sharply in - with Japan's Nikkei losing 2.3 per cent.
The parliament meeting follows three days of talks with Greece's creditors - the European Commission, the European Central Bank and the International Monetary Fund about a government proposal that the civil service cuts will come mainly from placing staff nearing retirement age on 'reserve,' or suspending them at reduced pay.
State workers who make up a fifth of the Greek workforce are guaranteed jobs for life under a constitution that bans firing government employees in virtually all circumstances. Read More
Concerns that Greece faces a worse-than-expected recession saw the FTSE open 2.5 per cent down and Asian markets also fell sharply in - with Japan's Nikkei losing 2.3 per cent.
The parliament meeting follows three days of talks with Greece's creditors - the European Commission, the European Central Bank and the International Monetary Fund about a government proposal that the civil service cuts will come mainly from placing staff nearing retirement age on 'reserve,' or suspending them at reduced pay.
State workers who make up a fifth of the Greek workforce are guaranteed jobs for life under a constitution that bans firing government employees in virtually all circumstances. Read More
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