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Prime Minister Lucas Papademos met yesterday with the leaders of the three parties backing the current transitional government - the leaders of PASOK, George Papandreou, New Democracy, Antonis Samaras and Popular Orthodox Rally (LAOS), Giorgos Karatzaferis - to discuss and jointly decide on the main elements of the agreement with the troika regarding Greece’s new economic programme in the framework of the new loan agreement.

According to a statement issued following the meeting, the Prime Minister and the political leaders agreed on main issues, including the adoption of measures that would reduce public spending by 1.5% of GDP, measures safeguarding the viability of auxiliary pension funds, and the recapitalization of banks. They also agreed to address the competitiveness deficit through such measures as the reduction of wage and non-wage labour costs, so as to support employment and promote economic activity. The Prime Minister and the political party leaders will meet again today to conclude their talks on the content of the programme.