Greek coalition in the balance over closure of state TV

The fate of Greece’s shaky coalition government is hanging in the balance after crucial talks to end a major disagreement over the closure of state TV collapsed.

Greek coalition in the balance over closure of state TV

The fate of Greece’s shaky coalition government is hanging in the balance after crucial talks to end a major disagreement over the closure of state TV collapsed.

Conservative prime minister Antonis Samaras’s surprise move last week to save money by shutting down the ERT broadcaster – with the loss of all 2,656 jobs - sparked protests in Greece and abroad, and angered both his centre-left allies.

After two rounds of negotiations earlier this week, the three parties seemed set for a compromise that would stave off early elections just one year into the government’s four-year mandate. But the talks broke down during the third meeting and it is unclear how severe the rift is.

Mr Samaras convened an urgent meeting with senior cabinet aides, while Socialist Pasok head Evangelos Venizelos and Democratic Left leader Fotis Kouvelis consulted party officials.

Mr Kouvelis said “no common political ground” was found in the meeting with Mr Samaras. “This is not just a formal, procedural issue. For us it is a matter of the democratic rule of law.”

Mr Samaras said later that he was determined to avoid early elections despite the rift, adding that he wants to continue with both of his allies.

But he insisted he will proceed “however” necessary after the Democratic Left rejected his compromise bid to restart state TV and radio broadcasts.

He added that Socialist Pasok had accepted his proposal. With Pasok, Mr Samaras has a slim parliamentary majority that would allow the government to pass key reforms demanded by bailout creditors.

Mr Samaras said that while no one wants early elections one year into the coalition’s mandate, lack of governance is equally undesirable. “We have three years left and we will see them through,” he said.

A government collapse would severely compromise Greece’s economic reform programme, without which its vital international bailouts would be in doubt, and push the country back into the political instability that forced two national elections a year ago.

Mr Venizelos said Greece’s situation is “particularly crucial”.

“”The question now is whether we will have early elections,“ he told journalists. ”We do not fear elections ... but the people do not want elections. They want a government that works effectively.“

ERT, whose workforce costs have been considerably trimmed over the past three years, is funded by obligatory contributions from all Greeks – whether they own a TV set or not – and by advertising revenue. After years of murky finances, the corporation is now turning a modest profit, and critics argue that sacking its entire workforce makes no financial sense, particularly as the state budget will have to bear the cost of compensating all laid-off workers.

ERT’s closure on June 11 sparked days of protests outside the corporation’s Athens headquarters.

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