The Greek private sector, where wages already fell by 20% with the implementation of flexible working hours and the replacement of collective contracts by personal contracts between company and worker, is now targeted by the ''troika'' (EU, IMF and ECB) which is on a mission in Athens since Tuesday.

Goal of the troika mission is to make sure that the agreement signed a year ago with Greece on a 110 billion euro loan is correctly applied and to pave the way for the arrival of officials of the involved institutions. Now the troika insists on a wider application of flexible forms of labour in order to further reduce labour costs in the country.

Meanwhile the European experts and officials of the Labour and Welfare Ministry have reached a technical agreement on a special financing for the country's welfare institute (IKA) and labour agency (OAED). Previously the troika opposed this move, claiming that the increase in unemployment is not high enough to justify additional funding to the two agencies. Based on the agreement, IKA will receive 600 million euros and OAED 500 million from the State budget.

The political aspect of the issue will be discussed next week in a meeting between the Finance Minister and the troika officials, because the question where the necessary funds will have to come from still has to be resolved.