The Greek government is presenting its draft 2012 budget to parliament today which includes the cutting of 30,000 civil service staff by the end of December.
Despite the austerity measures, the country’s finance minister admitted yesterday Greece will still miss budget deficit targets for both this year and next.
The government has blamed the shortfall on the deepening recession.
Greece needs to convince the IMF, EU and the European Central bank to handover the next eight- billion-euro bail-out instalment to avoid bankruptcy.
But despite doing a tour of European capitals, Prime Minister George Papandreou is losing support with some members of Germany’s coalition calling for Greece to leave the euro zone.
However analysts believe the so-called ‘troika’ of bail-out partners has little choice but to approve the latest tranche.
Meanwhile the mood in Athens is tense ahead of today’s parliamentary announcements. With enforced cuts already deeply unpopular, the 2012 budget draft is expected to contain more spending restrictions and tax rises.Transport workers who are among those likely to be affected are set to stage a six-hour strike.