Greek Party Leaders Prepare For Crucial Debt Talks

DEMETRIS NELLAS

ATHENS, Greece (AP) — The political leaders backing Greece's coalition government have ended their meeting after seven-and-a-half hours without an agreement on the austerity proposals of the so-called "troika" of bailout creditors — the European Union, the European Central Bank and the International Monetary Fund.

It appears the most contentious point is the troika's demand for cuts in auxiliary pensions over a threshold of €150 a month. Two of the three leaders — conservative Antonis Samaras and right-wing populist Giorgos Karatzaferis — have held out over this point, which, according to Karatzaferis, consumed almost the whole meeting.

Media are reporting that the third coalition leader, socialist George Papandreou, objects to cuts in main pensions. The three leaders have left Prime Minister Lucas Papademos to negotiate these points with the troika.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

ATHENS, Greece (AP) — Greek coalition leaders were locked in crucial debt talks with the prime minister Wednesday to review layoffs and other steep cutbacks as part of a €130 billion ($170 billion) bailout package intended to save the country from a looming bankruptcy.

The coalition met for seven hours without reaching consensus on where the cuts should fall, but eurozone finance ministers scheduled a meeting in Brussels on Thursday to discuss the second massive bailout for Greece, an indication a deal was close.

Athens has already accepted a demand to fire up to 15,000 workers in the public sector in 2012, but is under pressure to impose deeper cuts, including reductions in pension payments and the minimum wage. Leaders of three parties making up the 3-month-old Greek coalition have been under intense pressure to accept the new austerity measures.

A disorderly bankruptcy by Greece would likely lead to its exit from the eurozone, a situation that European officials have insisted is impossible because it would hurt other weak countries like Portugal, Ireland and Italy. Two years of cutbacks already have seen unemployment rise to around 19 percent and poverty to 20 percent in Greece, according to data from the EU statistics agency Eurostat.