Greece: Cash Lifeline Meeting Cancelled

Finance ministers from across Europe have cancelled a meeting to discuss a cash lifeline for Greece because they say the country has still not done enough to spring the money.

At the weekend, Greek MPs passed a new austerity package, putting into law deep job and spending cuts, as rioters set buildings alight and tens of thousands of protesters thronged the streets.

Prime Minister Lucas Papademos told voters the package had been demanded by international creditors in order to secure another 130bn euro bailout, and that failure to pass it would lead to "catastrophe" for Greece.

But it appears the austerity measures still do not go far enough to satisfy those holding the purse strings.

Prime Minister of Luxembourg Jean-Claude Juncker, who heads the Eurogroup, said information was still missing on how Greece plans to cut another 325m euros, a budget hole left when politicians in Greece refused to cut pensions even further.

He also said Greek political leaders failed to supply written assurances they would implement the austerity drive even after elections this spring.

There are also reports that even those key conditions may not be enough.

The so-called Troika of lenders - the International Monetary Fund, the European Central Bank and the European Commission - want more so-called 'prior actions' before they will agree to hand over any money, according to a series of demands leaked to the Associated Press.

In the document seen by the news agency, more specific action is detailed, including shaving 1bn euros from pharmaceutical spending, 300m from the defence budget and other savings totalling 1bn.

The details are contained in a 'Memorandum of Understanding' which will now be discussed by the eurozone finance ministers in a teleconference later and at the next scheduled meeting of the Eurogroup on Monday.

Some of the savings are likely to have already been included in the austerity package, but the 16 other euro countries will still want to ensure the package will be fully implemented.

Speaking on Sky News' Jeff Randall Live, Notis Mitarachi, head of economic policy for Greece's opposition New Democracy Party, said: "We're talking about 0.1% of GDP missing.

"I think there are enough proposals on the table. I'm certain that (the issue) can be solved and will be solved quickly.

"I'm certain that there will be a positive outcome very soon.

"I'm a member of the opposition and I am aware that we have enough proposals on the table with specific cost cuts and they should resolve the requests of the eurogroup.

"We are working on a direction and we are fully committed to the success of this programme. That is the key message that people should take home."

Greece is running out of time to get its hands on the bailout money.

On March 20, it has to pay back creditors 14.4bn euros in a massive bond redemption - but it will not be able to do so without a bailout.

Failure to pay could lead to a so-called disorderly default, which would likely see Greece forced to abandon the single currency.

Another piece of the jigsaw still has to fall into place: a deal with private bondholders to write down a large slice of the country's 300bn euro debt mountain.

It was expected banking negotiators were likely to make an announcement on Wednesday evening that those talks had been successfully concluded, but that may also now be delayed.