Austerity necessary to regain credibility, says Greek PM

Greek Prime Minister Antonis Samaras has stressed that a fresh austerity package under discussion is necessary to regain credibility and overcome the threatening debt crisis.

“We are at a crucial crossroads,” Samaras said Saturday while inaugurating the 77th Thessaloniki International Fair.

“In order to avert the catastrophe we had to restore credibility,” Xinhua quoted him as saying.

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The annual commercial exhibition for decades has been the showcase of achievements of Greek and foreign entrepreneurs, and an opportunity for Greek premiers to present their economic policies. But on Saturday, thousands of protesters denounced austerity.

Samaras acknowledged in a short statement that Greek citizens suffer from recession due to rounds of painful spending cuts to counter the crisis since 2010.

He underlined, however, that there is no alternative way at the moment rather than the implementation of an additional 11.5 billion-euro ($14.7 billion) austerity package to 2014.

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The reduction of deficits and the acceleration of the structural reform, part of the bailout deals with EU and International Monetary Fund (IMF), are the keys to regain the trust of creditors and unlock further rescue loans this autumn to boost liquidity, growth, keep Greece away from the brink of default and in the eurozone, he argued.

IANS