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Inspectors to weigh Greece’s austerity efforts

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European Union (EU) and International Monetary Fund (IMF) inspectors will return to Greece on Sept. 29 to decide whether Athens has done enough to secure a new batch of aid vital to avoid insolvency, while Germany suggested that a new bailout may have to be renegotiated, Reuters reported.

 

Facing a wave of strikes and protests, Greece’s Socialist government is accelerating budget measures to meet the terms of an IMF and EU rescue deal so it can receive a new loan next month.

 

The “troika” team of inspectors, which had threatened to cut off aid if Athens did not move faster, will hold talks on a plan to deepen budget cuts and raise taxes that has driven protesters back onto the streets for the first time since June.

 

“I can confirm the Eurogroup (of euro zone ministers) will hold an additional meeting as soon as possible, still in October, to discuss the situation of Greece and consider the disbursement of the next tranche,” a European Commission spokesman said in Brussels, announcing the troika’s return.

 

German Chancellor Angela Merkel suggested that parts of a planned new 109 billion euro ($148.6 billion) rescue for the debt-laden country could be reopened, depending on the outcome of the troika’s audit.

 

“We have to wait and see what the troika … finds and what it will tell us (whether) we will have to renegotiate or not,” she told Greek state television NET, without elaborating.

 

If deemed adequate by the inspectors, the new austerity drive will secure an 8 billion euro loan Greece needs to pay bills and salaries in October and bring it closer to moving on to a second bailout agreed upon in July.