The Greek government pledged to apply further austerity measures in order to secure the next tranche of 2010's bailout package due in October, and also to secure the second bailout package agreed back on July 21 by European leaders.

The new plan could trigger more unemployment in Greece, where the government could fire more workers in order to reach the 6.6 billions austerity target, in attempts to lower the budget deficit in 2012 to 6.8% of the total GDP, noting that the target set by the European Union, the International Monetary Fund and the European Central bank is 6.5% of the total GDP.

Inspectors of international lenders returned to Greece recently, and approved the new proposal, which needs to be approved by the Greek parliament before Papandreou's government applies the new measures.

European Finance Ministers are to meet today to consider the implementation of the European rescue funds and also to discuss the risk of a Greek default.