Greece, under mounting pressure from euro zone partners, is scrambling to deliver on reforms and fiscal targets to avoid bankruptcy but its efforts seem doomed and snap elections are on the horizon, Reuters reported. A chronically inefficient public sector, persistent corruption and cantankerous labour unions have thwarted progress in the year and a half since Athens secured its first, 110 billion euro bailout in exchange for tough austerity measures and structural changes. EU partners are losing patience and the government's popularity is sinking as deficits grow instead of shrink amid a deepening recession. The public, fed up with austerity, is demanding change. Prime Minister George Papandreou is expected to trumpet reforms at an annual economic policy speech in the northern Greek city of Thessaloniki this weekend but analysts say new pledges will do little to brighten the gloom. EU partners may find a compromise for now so Athens can get the next bailout tranche and avert a messy Greek collapse that could bring down the euro. But Germany, the main bankroller of Greek bailouts, made clear on Thursday that Athens needed to fulfill conditions to stay in the common currency bloc. Analysts say a Greek default or even an exit from the euro down the line is now a real risk unless a sea change of reforms take place, despite vehement denials by Athens. Papandreou, who won elections in 2009 on tax and spend pledges, seems to have assigned all economic matters to his new Finance Minister, Evangelos Venizelos, who is racing to catch up after 18 months of foot dragging on issues from tax collecting to privatisations. Venizelos is also tasked with keeping rebellious socialist MPs in line, negotiating with the "troika" of EU and IMF inspectors and euro zone partners on fleshing out a second, 109 billion euro bailout clinched in July but complicated by demands for collateral. But analysts said most were steps Greece had announced before and which had met resistance from within the party. Even after the latest alarm bell, some MPs and ministers were defensive of government policies. Internal resistance has been Greece's doom, analysts say. A clientelistic public sector fostered by successive governments for decades and unions spoiled by their political party patrons have fought reforms tooth and nail. -- SPA
