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New Greek government seeks budget deficit deadline extension

Greece's new coalition government is seeking a two-year extension to its deadline which requires it to reduce its budget deficit.

The Greek government has said it wanted to review several austerity measures enacted for rescue loans and bargain for a two-year fiscal adjustment extension as it prepared for an EU-IMF audit.

The aim would be to meet fiscal goals without further cuts to salaries, pensions and public investment and new taxes.

In a policy document, the government said its aim would be to freeze further civil-service layoffs, sales-tax cuts and longer unemployment benefits.

The document was published following agreement on policy goals between the coalition partners New Democracy, Pasok and Democratic Left.

Under its loan agreement, Greece had promised to reduce the state payroll by 150,000 civil servants by 2015, including 15,000 this year.

The blueprint is designed to reduce anger in Greece towards the austerity policies of the EU-IMF loan agreement, which are deemed to have deepened a recession now continuing for a fifth year.

Over a quarter of Greece's workforce, 1.12 million people, are jobless.