Greece resumes talks with auditors amid protests

Civil servants blockaded several ministries to protest against austerity measures as Greece resumed talks with EU and IMF inspectors on an 8 billion euro aid tranche it needs to avoid bankruptcy next month.

The Socialist government decided on unpopular pension cuts, lay-offs and taxes last week to lure back the so-called troika of European Commission, European Central Bank and International Monetary Fund officials, who suspended talks earlier this month after disagreements on the steps needed to plug fiscal gaps.

Dozens of employees gathered in front of the finance ministry on Thursday in protest against the measures, shouting: "Take your bailout and leave".

They stopped some troika officials from entering the building, and the mission chiefs met Finance Minister Evangelos Venizelos in another government office.

"The climate was positive and creative after the tough measures that were decided," the finance ministry said in a statement after the talks resumed.

Civil servants also blocked the entrances of other public buildings including the interior, justice, health and agriculture ministries, a police spokesman said.

"These measures will not get us out of the crisis. I don't have enough money to pay for the extra taxes and levies," said taxi-driver George Kouris, 48, a father of two.

Before returning to the table, the EU/IMF mission demanded written assurances from Greece that its new pledges will be met, highlighting a lack of trust after repeated failures to meet targets and foot-dragging on privatisations.

Prime Minister George Papandreou, who urged his cabinet today to step up efforts to meet EU/IMF targets, will hold talks on Greece's debt situation with French President Nicolas Sarkozy in Paris tomorrow.

"We are moving as fast as we can to finish pending issues and you should not allow issues in your area to linger," Papandreou admonished ministers.

In a sign of difficulties in implementing reforms, the cabinet postponed a decision on a measure announced last week to put 30,000 public sector workers on the road to redundancy.

"We must discuss the details with the troika," government spokesman Ilias Mosialos said.

Other officials said the government had drafted three alternative scenarios that would be discussed with inspectors before being finalised at a cabinet meeting on Sunday.

Athens has promised its EU and IMF lenders that it would put thousands of public sector workers in a so-called labour reserve this year, lifting a taboo on the sacking of civil servants to meet a condition for continued bailout aid.

But officials say enforcing the measure is very complicated in a country where the constitution protects civil servant jobs.