Greece fights for two-year austerity extension

Greek Socialist official Panos Beglitis says a proposed round of massive new austerity cuts won’t work without major changes and an extension.

Parties in the country’s new coalition government are at odds over how to rescue troubled Greek public finances.

Beglitis made the remarks earl this month, hours before the coalition tried once more to hammer out a €11.5 billion ($14.1 billion) package of cuts for 2013-14.

He insists Greece needs a two-year extension to remain afloat.

Antonis Samaras, the centre-right prime minister, is expected to outline the proposal during talks next week with Angela Merkel, German chancellor, in Berlin and French President François Hollande in Paris, reports Financial Times.

The country’s extension plan calls for additional funding, as well as the ability to spread cuts over four years until 2016. Having the deficit decline by 1.5% of national output rather than 2.5% would be more manageable, says officials.