Greek debt talks deadlocked

Representatives of the European Union, the European Central Bank and the International Monetary Fund – the "troika" of creditors keeping Greece's insolvent economy afloat – flatly rejected key cost-cutting measures in a €13.5bn austerity package lenders are demanding in return for further aid.

Insiders said the lenders had objected to proposed cuts to the operational budgets of ministries as well as plans to lay off an estimated 15,000 civil servants by 2014. Instead, the visiting inspectors insisted the ruling coalition agree to further cuts in wages and pensions, a potentially explosive demand that Stournaras has repeatedly said will lead to the collapse of the Greek government.

This morning's youth unemployment stats also show that Greece was the eurozone country with the most young people out of work. According to Eurostat, 55.4% of adults under 25 are out of work in Greece, compared with 52.9% in Spain. In contrast, several northern European countries still have single-digit youth unemployment rates, with 8.1% in Germany, 9.4% in the Netherlands and 9.7% in Austria.

http://www.guardian.co.uk/world/2012/oct/01/greek-debt-talks-deadlocked-lenders