Finance Minister Evangelos Venizelos of Greece told members of Parliament on Thursday that the beleaguered government has decided to adopt more austerity measures, which consisted of reducing pensions and making adjustments in the public sector.

This decision, which is not well-liked by majority of Greek citizens, was caused by increasing pressure from foreign financing institutions.

The International Monetary Fund, European Central Bank and European Commission have already advised Greece that these measures are a prerequisite for the release of the next payment for assistance in the amount of $11 billion. This loan is needed for disbursements that will be made during the final quarter of the year.

"The markets are blackmailing us and the circumstances are humiliating us," according to the finance minister. "There is no way for us but to continue with our austerity program to pacify the financial sectors," he added.

Just a few months ago, the government implemented actions that came under severe criticism from the people. These were increases in taxes and freeze in wages which forced the top two labor unions to call for 24-hour general strikes this coming Oct. 5 and 19.

Following a marathon cabinet conference on Wednesday, the government made an announcement regarding its position although it did not release any details about the new property tax that would be imposed through energy bills to prevent any evasion. The government, likewise, announced that almost 30,000 employees from the public sector will be placed in a labor reserve program.

Meanwhile, the European Central Bank is taking additional steps to alleviate a crisis even as the IMF issued a warning that any sovereign debt predicament will entail a substantial increase in bank reserves.

Political leaders of Greece and Germany have been locked in a stalemate as to how to evade this sovereign debt crisis.

"Political differences within economies undergoing adjustments and among economies providing support have blocked achievement of a lasting solution," the IMF said.

The IMF already announced that a number of European banks will require new capital to serve as insurance against losses arising from the debt crisis.

Read:

http://www.nytimes.com/2011/09/22/world/europe/greece-sets-new-austerity-measures.html?ref=business

http://www.nytimes.com/2011/09/22/business/global/greek-government-tries-to-sell-new-belt-tightening-measures.html?ref=europe