Greece bailout talks make progress

Officials with both the Greek government and the European Commission reported progress Tuesday in a teleconferenceto reviewthe countrys efforts to curb spending and lower its budget deficit.

International debt inspectors will return to Greece next week to continue the review, officials in Athens and Brussels said.

Those targets are a condition to receiving another cash injection, worth8billion($10.9 billion Cdn).

"Good progress was made, and technical discussions will continue in Athens over the coming days," a European Commission statement said after the two-hour talks.

That would be the sixth instalment of the rescue package agreed to in May 2010. Without it, Greece could default by mid-October.

"The full mission is now expected to come back to Athens early next week to resume the review, including policy discussions."

More strikes planned

A spokesman for the commission declined to say whether Greek Finance Minister Evangelos Venizelos offered new measures beyond what has already been announced.

The country had faced growing pressure from its eurozone partners and international creditors to do more to reform its economy as it grapples with a crippling recession and a shortfall in its current budget of2 billion ($2.7 billion Cdn).

The government still must live up to its commitment to lower the 2011 budget deficit goal to 7.6 per cent of gross domestic product.

The Socialist government has already taken a series of highly unpopular austerity measures over the past 20 months, cutting public sector pay and pensions and hiking taxes and retirement ages. Unions have responded with strikes and demonstrations.

Hundreds of civil servants demonstrated peacefully in central Athens Tuesday, while about 250 high school students marched in a separate protest against shortages in schoolbooks and other supplies at state-run schools.

Public transport workers have called for a daylong strike Thursday, while air traffic controllers have declared a 24-hour strike Sunday and a four-hour work stoppage on Sept. 28.