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Originally published Sunday, July 29, 2012 at 7:43 AM

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Greek coalition government wrestles with new cuts

Three parties in Greece's new coalition government are to resume talks to decide on a major new austerity package demanded by rescue lenders as a condition for continued financing.

The Associated Press

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ATHENS, Greece —

Three parties in Greece's new coalition government are to resume talks to decide on a major new austerity package demanded by rescue lenders as a condition for continued financing.

Conservative Prime Minister Antonis Samaras will meet Monday with junior coalition partners who have so far declined to sign off on Cabinet-level proposals for the new (EURO)11.5 billion ($14.1 billion) package for 2013-14.

Government spokesman Simos Kedikoglou refused to rule out new pension and salary cuts.

Debt inspectors from the European Union, European Central Bank and International Monetary Fund also resumed meetings with government officials to try and finalize the new austerity measures.

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