Greek parties face crucial EU bailout deadline

German Chancellor Angela Merkel is to travel to Paris with her cabinet to meet French President Nicolas Sarkozy and his ministers. The talks take place as critical negotiations resume in Greece between the leaders of the main political parties on the tough terms of an EU-IMF bailout worth €130bn. If Greek Prime Minister Lucas Papademos is unable to secure support for the deal, the country risks sliding into a chaotic debt default, which is likely to have significant negative impacts across the eurozone. Before giving out any bailout funds, negotiators from the European Union, European Central Bank and International Monetary Fund are demanding the parties agree to yet more austerity. The conditions are reported to include a 20% cut to the minimum wage, a 15% cut in certain pensions and 15,000 civil service redundancies this year alone. The talks were adjourned yesterday after five hours. Mr Papademos spoke of progress, but the far right leader suggested he could not support a deal that could create a revolution that would burn all of Europe. Greek Socialists said the EU was demanding agreement in principle by noon (10am Irish time). Greece faces loan repayments of more than €14bn next month and will not be able to pay. Even if Greece secures the €130bn in additional bailout funds, and private investors finally agree to writing-off about €100bn in Greek government bonds, it still may not be enough.