![The [Greek] European Tragedy](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWKI5s90SFm1wWTk6bs4p7CgslaC2SnYPsrZhb-B-smOufNNCSxCvpBLI9hOB-LsXZjir_PNmEiMk2-E62F3xkg96IoC6QFAaZAnPRTVH340IN9WBRmWJqPkjWlgyRj3zpALp7h6hvA58/s920/GkBack_new.jpg)
Greek civil servants opposing a new barrage of austerity cuts on Thursday blocked a host of ministries as senior auditors from the EU and the IMF were to begin a vital fiscal audit to see in the debt laden country can avoid default.
Protesters chant slogans against the new austerity measures during a rally in front of the finance ministry in Athens. Photo: Getty
Telegraph Staff and agencies 7:55AM BST 29 Sep 2011
State TV NET reported that nearly all major ministries were occupied by protesting staff, including the ministries of finance, development, justice, labour, health, interior affairs and agriculture.
The occupations began early this morning before official opening hours and were to continue until Friday, NET said.
Greek civil servants oppose a new round of pay cuts and layoffs imposed by the government as it struggles to slash a runaway deficit.
A high-level mission from the EU, the IMF and the European Central Bank, which saved Greece from bankruptcy last year, have returned for a report that will determine if the debt-hit nation can again escape default.
Four weeks ago the auditors quit the country abruptly, unhappy with the government's efforts to tackle its debt mountain.
Related Articles
Global stockmarkets fall on fears eurozone bail-out will stall 28 Sep 2011
Europe must now grasp its chance to turn off the doomsday device 28 Sep 2011
Protesters plan to occupy the LSE 28 Sep 2011
EU financial transaction tax 'would harm UK' 28 Sep 2011
This week the Greek parliament approved a controversial property tax that aims to plug a budget hole and help unlock bailout funds.
The finance ministry said Greeks have €400bn invested in property, roughly the size of the nation's sovereign debt which is more than €350bn. It has estimated the tax is only 0.2pc of the real value of property and was "a completely tolerable burden".
"The important thing is to meet the 2011 and 2012 budgetary targets," Finance Minister Evangelos Venizelos told the parliament ahead of the vote.
Greece needs an €8bn loan, part of a €110bn rescue package set up in May 2010, to keep paying its bills in October.
EU and IMF negotiators will resume their talks with Greek's leadership on Thursday, amid mounting social tension and what the European Union describes as the biggest challenge of its history.
German Chancellor Angela Merkel has suggested a second Greek bailout may even need to be renegotiated.
Berlin, Paris and the European Central Bank are also at odds over how much Europe's banks should lose in the event of a default, which would require massive recapitalisation of bankruptcy-threatened lenders.
Asian markets gave a mixed response on Thursday following weak leads from Wall Street as worries returned over whether eurozone leaders can agree on measures to resolve their debt crisis.
As Greece waits for the funds from the first bailout approved last year, a few eurozone states have yet to sign off on a second €159bn Greek rescue package that was agreed in July.
German lawmakers vote today on expanding the scope and size of the EU's current rescue fund - the European Financial Stability Facility (EFSF).
It has already helped rescue Ireland and Portugal and will be tapped for Greece's second bailout.
Finland's parliament finally approved changes to the fund on Wednesday, despite deep-rooted reluctance there to bailing out eurozone strugglers.
But another seven of the 17 eurozone states still have to approve the measure.
Even if auditors decide the Greeks are doing enough to merit more financial aid, eurozone partners and the International Monetary Fund will still have to sign off on the money.
Finance ministers meet on Monday in Luxembourg, but EU economic affairs spokesman Amadeu Altafaj indicated that the talks in Athens would not be concluded in time for a decision by then.
The head of the German banking federation criticised talk that eurozone governments may now push private holders of Greek government bonds to accept losses of 50pc instead of 21pc as agreed in July.
"If governments now unravel the deal that was reached on private-sector involvement, then the loss in confidence for the financial markets would more than negate the benefits of any such action," Andreas Schmitz told the German daily Bild.
A Greek government spokesman said the country, where austerity measures have met fierce resistance, would escape default.
Greeks protest as EU and IMF begin bailout loan audit - Telegraph