EU ramps up pressure on Greece as deadline expires

Embattled Greek Prime Minister Lucas Papademos faced growing EU pressure yesterday to quickly agree tough austerity measures in a new bailout but talks with his coalition partners on the deal were delayed.

As unions called a general strike for today, the stakes mounted after Germany and France demanded progress.

However, a key meeting due to have been held yesterday with heads of the Greek socialist, conservative and far-right parties which form Mr Papademos’ unwieldy coalition government was put back.

Around 5,000 people took part in evening protests called by the unions and left-wing parties against the austerity measures as Athens was hit by a torrential thunderstorm and strong winds.

The coalition talks, needed to secure approval of stinging austerity measures, “will very probably be held on Tuesday,” a government source said, adding: “The negotiations continue, there are still questions to address.”

A new eurozone package worth €130 billion in aid to Greece, pending since October, hangs in the balance.

In Paris, German Chancellor Angela Merkel and French President Nicolas Sarkozy ramped up pressure on Athens, as did the spokesman for a European commissioner in Brussels.

A spokesman for EU commissioner Olli Rehn warned that Greece had already in effect missed the deadline to get the deal done by the coalition to reshape the economy and slash its debt in exchange for another bailout.