Lenders' chief auditors back in Athens for bailout informal review

The chief auditors of Greece's international lenders returned to Athens on Tuesday to assess progress in the implementation of the new third bailout program, as trade unions launch a new wave of anti-austerity protests and strikes.

Envoys of the European Commission, the European Central Bank, the European Stability Mechanism (ESM) and the International Monetary Fund will hold a series of meetings with Greek officials until the weekend to be briefed on the steps made and the ones planned for coming weeks.

The review of the Greek program was expected to formally start most likely in November after the second set of prior actions required by creditors would have been voted in the Greek parliament.

Greek legislators approved last Friday a first round of new tax hikes and reforms in order to secure the disbursement of the next bailout tranche to Athens shortly and by the end of the year the necessary funding for the new recapitalization of the Greek banks and the start of dialogue on debt relief.

On the basis of Friday's vote a Eurogroup Working Group meeting on Wednesday was expected to prepare the ground for the Eurogroup's Nov. 9 meeting and advise the ESM on whether to give the greenlight for the release of the first sub-tranche of 2 billion euros (out of a total 3 billion euros aid installment) next week.

Assuring that the Greek government intends to move on full speed this time, government spokeswoman Olga Gerovassilis told local media on Tuesday that all necessary prerequisites would be passed by the Greek parliament by mid-November.

Friday's draft bill contained about a third of the about 50 required prior actions, according to Finance Minister Euclid Tsakalotos. Among the most controversial provisions was the gradual abolition of early retirement.

Media commentators and analysts in Athens noted that the second round of measures will be the most difficult to swallow by Greek society and therefore even ruling party lawmakers may feel pressure to vote against some reforms and cost-cutting measures.

The second planned multi-bill was expected to contain a more detailed new pension reform that will introduce further pension cuts, provisions for the management of "bad loans" and more tax increases for professional groups, such as farmers.

As the government declares its determination to move forward, labor unions have started a fresh round of strikes and protests.

On Wednesday the umbrella union of civil servants ADEDY has called for a work stoppage to protest the pension reform, while dockworkers plan a demonstration for Wednesday, a 24-hour strike on Thursday and further actions in November.

The umbrella union of private sector workers GSEE has called for a 24-hour general strike for Nov. 12. It will be the first strike major action since the new government took office after the Sept. 20 general elections. Enditem