Greek parties delay bailout talks despite EU threats

Greek political parties delayed yet again on Tuesday making the tough choice of accepting painful reforms in return for a new international bailout to avoid a chaotic default, seemingly deaf to EU warnings that the euro zone can live without Athens.

With a series of deadlines come and gone, leaders of the three parties in the coalition of Prime Minister Lucas Papademos postponed what was supposed to be a crunch meeting until Wednesday.

One party official blamed the delay, which is likely to enrage euro zone leaders desperate to tie up the 130 billion euro rescue after months of argument, on missing paperwork - the same reason given when the meeting was postponed from Monday to Tuesday.

"The reason is that the political leaders will not have the time to assess the measures in the bailout," said the party official, who declined to be named.

The heads of the conservative, socialist and far-right parties had yet to receive the draft agreement with the European Union and IMF only half an hour before the 1900 GMT scheduled start of the meeting on Tuesday.

"We can't say a plain yes or no unless we have assurances from the relevant authorities and the state that these actions are constitutional and will lead the country out of the crisis," far-right LAOS leader George Karatzaferis said. "There is time. When it comes to future of the country, we will find the time."

Party leaders have hesitated to accept the tough terms of the deal, which are certain to mean a big drop in living standards for many Greeks.

Adding to the pressure, unions staged a 24-hour strike on Tuesday, and protesters tussled with police outside parliament, chanting: "No to mediaeval labour conditions, don't bow your heads, show resistance!"

Deadlines are rapidly losing any significance as one after another passes. Last weekend, Finance Minister Evangelos Venizelos said a deal had to be done by Sunday. Then the parties sailed past a Monday deadline to give their response to the EU, promising that Tuesday would be the day for decisions.

The funds come at the price of deeply unpopular wage and spending cuts that have infuriated ordinary Greeks struggling through the country's fifth year of recession.

Tuesday's strike closed tourist sites and disrupted public transport. Scuffles broke out as protesting strikers tried to climb steps leading to parliament, chanting: "Don't bow your heads, show resistance!"

Riot police rushed to block their way as some protesters sprayed red paint on the steps and a wall next to the tomb of the unknown soldier, which commemorates the fallen in past Greek campaigns. Other protesters burned a German and a Nazi flag.

Ceremonial guards in traditional Greek kilts, a top Athens tourist attraction, were evacuated and the protesters were pushed back on to the adjacent Syntagma Square, where riot police created a defensive line.

However, the turnout was noticeably smaller than at other protests in recent months, with heavy showers dampening the marchers' spirits.

One civil servant watching the protests expressed a weary anger at the austerity imposed already, which has almost halved her monthly pay to 900 euros, and higher taxes.

"I wouldn't mind paying for the next two years if I knew austerity would take us somewhere," said 32-year-old Leto Papadopoulou. "But this crisis seems endless. In 10 years from now, I will be a lost case for the labour market."