Greek outlines issues it wants renegotiated

Greeces new coalition government said Saturday it will seek to repeal some taxes, halt layoffs and extend by two years the deadlines for tough austerity measures imposed under its international bailout agreement.The policy statement issued by the three-party coalition came as the countrys new Prime Minister Antonis Samaras successfully underwent eye surgery and his finance minister, Vassilis Rapanos, remained hospitalized after collapsing Friday.The general aim is no more cuts to salaries and pensions, no more taxes, the statement said, adding that it would not carry out any public sector layoffs.Samaras, whose conservative New Democracy party came first in June 17 elections but did not win enough votes to govern alone, heads a government that includes his partys long-time socialist rivals, PASOK, and the small Democratic Left party.The creation of a government following two inconclusive national elections ended weeks of political uncertainty that had led to fears of Greece being forced out of Europes joint currency. Such an event could have dragged down other financially troubled European countries along with the continents economy.While pledging to stick to the countrys bailout agreement with other European countries and the International Monetary Fund, all three parties had said they would seek to renegotiate certain terms of the loan agreement.Greece is mired in the fifth year of a deep recession, and has seen unemployment spiral to above 22 percent.Widespread anger with rapidly falling living standards led to a massive increase in support for anti-bailout parties in the last two elections.The new government will aim to extend by at least two years the deadlines for it to impose tough fiscal reforms to support demand, development (and) employment, it said.