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Good: Brussels faces more gloom as Greek bailout talks POSTPONED over MORE quarrelling

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Negotiations have been postponed over a fallout regarding labour reforms as well as other issues.

It had been hoped that a deal would have been reached by the end of the year but the liberalisation proposals regarding labour practices were dubbed as “irrational” by the left-wing Greek government led by Alexis Tsipras.

Government spokesman Dimitris Tzanakopoulos said the two sides would have “a clearer picture” of where negotiations stood at a Eurozone Finance Ministers’ meeting on January 26.

Finance Minister Euclid Tsakalotos will travel to Paris on Wednesday to meet his French counterpart, Michel Sapin, to discuss the bailout talks.

Greece is in a deep economic crisis and has rejected past attempts to impose strict austerity economic measures on the Hellenic country.

Back in December Mr Tzanakopoulos got into a war of words with the International Monetary Fund (IMF), one of the country’s creditors, after the financial body stated that the country’s budget targets were “simply not credible”.

Maurice Obstfeld, the IMF’s chief economist, and Poul Thomsen, director of the IMF’s European department, said cuts to investment and discretionary spending had “gone too far” and would prevent the Greek economy from recovering.

Mr Tzanakopoulos hit back saying the IMF had “betrayed” the country by trying to impose what he saw as extreme measures.

The IMF’s frustration casts further doubt on its participation in the country’s third rescue programme, which is a key objective for eurozone governments in Germany, the Netherlands, and Finland.

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