The political leaders' meeting will take place tomorrow at 1pm

The government is at a critical juncture, with the leaders of both major parties keeping a constant distance from PM Lucas Papademos. Papandreou and Samaras vetoed specific requirements by the lenders of our country. Papademos, in close cooperation with the two parties, deputy PM Evangelos Venizelos and the Troika representatives in Greece, is trying to reconcile their views. In case he does not succeed, the plan for elections by the end of February will be immediately put in motion.

The points of disagreement are supplementary pensions, reductions in minimum wages, the 13th and 14th salaries, and the manner of recapitalization of the Greek banks.

The Troika insists that in a few months there will be an inability to pay out supplementary pensions, since the supplementary funds will soon face a liquidity problem. It suggests the reduction of pensions and the restructuring of funds. ND is asking for an alternative way to resolve this issue, since pensions are already low.

On the issue of private sector wages, Papandreou and Samaras do not seem to be willing to agree to changes, having the agreement of social partners as a a strong argument for their side. The party leaders say that Papademos should use the bargaining chip of this agreement. But the PM replied that the lenders insist. And this will be the mother of all battles as it entails the lifespan of Papademos' government as well.

Lastly, the issue of banks was brought up by George Papandreou in his speech to the PASOK parliamentary group. He spoke again in favor of recapitalization through common stocks and not preferred ones.

However, partners of the PM, refusing to comment on the merits of the controversy, stressed the need to find a common ground of understanding between both leaders, and between the Greek government and the lenders. The partners of Greece hinge the new agreement and the next installment of the loan upon the satisfaction of their demands. In any case, time is winding down and developments are expected over the weekend.