Greece's conservatives vowed on Monday to reject any new austerity measures in return for the aid that is keeping Athens from bankruptcy, signalling a new coalition government may not enjoy the kind of cross-party support its lenders demand. Ahead of a confidence debate in Greece's new cabinet, New Democracy party leader Antonis Samaras said he would not sign up for any new belt-tightening.
A policy mix of spending cuts and tax hikes agreed with Greece's international lenders should be changed to better promote growth, he said. Although Samaras' party is part of the new administration led by former European Central Bank vice president Lucas Papademos, its support for the three-day old government has so far been lukewarm. Another coalition party - the small far right LAOS - has also said it would not support any new wage or pension cuts.
"I agree with the goals to cut government spending ... to reduce debt, to erase the deficit, to make structural changes. I do not agree with whatever stunts growth," he told party MPs ahead of a three-day confidence debate, starting on Monday. His backing is crucial for passing legislation needed to satisfy the demands of Athens' bailout sponsors.