A 24-hour general strike, the fourth such strike this year announced by GSEE-ADEDI today in both the private and public sectors, is expected to paralyze train and ferry traffic, disrupt flights and shut down public services as unions seek to send a message to the government that they will not endure a third straight year of cuts.

Several marches are expected to culminate in demonstrations outside parliament, which in the past have ended in clashes between police and protesters. 4,000 police are expected to be deployed on the street.

The government thought that a new austerity package worth 7.8 billion euros this year would be enough to unblock the loans. But the troika are now demanding 9.2 billion euros in cuts according to the finance ministry in order to release aid needed to avoid bankruptcy.

Meanwhile, according to an official announcement: “Staff teams of the European Commission (EC), the European Central Bank (ECB), and the International Monetary Fund (IMF) have concluded their visit to Greece to discuss with the authorities the set of policies that could serve as a basis for the completion of the review of the country’s economic adjustment programme.

During the visit, the EC/ECB/IMF staff teams and the authorities had comprehensive and productive discussions on the policies needed to restore growth, employment and competitiveness, secure fiscal sustainability in a socially balanced manner, and strengthen the financial system.

The authorities and staff teams agreed on most of the core measures needed to restore the momentum of reform and pave the way for the completion of the review. Discussions on remaining issues will continue from respective headquarters and through technical representatives in the field with a view to reaching full staff level agreement over the coming days. Furthermore, financing issues will be discussed between the official lenders and Greece.”

In his speech during the summit, Papoulias called the Commission to unblock more money for the Greek regions, through the fifth Community Support Framework. He said EU funds for Greece were based on data released in 2008. “Greece can not be judged on the basis of 2008 data. Today is a different country,” Papoulias said, referring to high unemployment, particularly amongst young people.

He added that Member States that are invited to apply fiscal discipline are subject to intolerable pressures.

Earlier yesterday, the President of the Republic had brief discussions with the leaders of Great Britain, Germany and France. He had a meeting with European Commission President Jose Barroso, later on with Angela Merkel. On Wednesday eveνing, he met with President of the European Council, Herman Van Rompuy.

Meanwhile, Greece’s 300 newly elected lawmakers were sworn into Parliament Thursday, eleven days after the country’s second election in six weeks left no party with enough votes to govern outright.

The election of parliamentary speaker will be the main item on the agenda in today’s session, according to ANA. New Democracy will propose Vangelis Meimarakis for the post and he will require the support of 151 MPs to take the position. Next, the election of seven deputy speakers, six deans and three secretaries will take place.

Yesterday, the International Monetary Fund said it will send a fact-finding mission to Athens early next week for talks with Greece’s new government and signaled it was open to discussing target adjustments under the economic programme. “This mission will assess the recent economic developments,” IMF spokesman Gerry Rice told a news briefing, Reuters reported. “This visit will be followed by a negotiating mission to discuss with the authorities the policies necessary to achieve the program objectives.”

EU heads of state or government will conclude the first phase of the 2012 European Semester, the six-month cycle of economic policy coordination. They will endorse the country-specific recommendations prepared by the Commission that provide guidance for member states implementing national decisions on budgets, structural reforms and employment policies.

The European Council will take stock of the implementation of the “EU growth agenda”, with a particular emphasis on youth employment. Furthermore, it will review progress and discuss how the Union can deepen its trade and investment relationships with key partners.

EU heads of state or government will also have their first substantial discussion on the Multiannual Financial Framework (2014-2020).

Finally, the European Council is expected to examine the question of opening accession negotiations with Montenegro, following the 26 June General Affairs Council.

In his invitation letter to European leaders, European Council President Herman Van Rompuy wrote: “The challenge for this European Council is, more than ever before, to signal, in a clear and concrete manner, that we are doing everything required in response to the crisis. This means endorsing the country-specific recommendations to guide our policies and budgets, adopting the “Compact for growth and jobs”, launching the final phase of work towards a new Multiannual Financial Framework (MFF) mobilised in support of growth and jobs, and, last but not least, setting our Economic and Monetary Union (EMU) on a new path…”

According to sources, Samaras’s letter states that Greece will stick to its bailout commitments but underlines that certain “adjustments” are necessary due to a worsening recession and high unemployment.

Greece’s financial situation though is unlikely  to dominate Thursday’s EU summit , with Germany’s Angela Merkel saying total debt liability would not be shared in her lifetime and giving little support to Italian and Spanish pleas for immediate crisis action, who have both appealed for European rescue funding recently.

“I don’t see total debt liability as long as I live,” Merkel was quoted as saying, a day after branding the idea of euro bonds “economically wrong and counterproductive”.

EU officials are most likely to discuss Greek calls for adjustments to the memorandum briefly, even though there appears to be little willingness for any concessions over and above an extension of Greece’s fiscal adjustment period, according to Kathimerini.

No decisions are expected to be taken concerning Greece’s financial situation before the planned visit to Athens  by Greece’s creditors, the EU, ECB and IMF, collectively known as the Troika, who have postponed their planned visit to Athens due to the ill-health of PM Samaras.

The Troika visit will now take place in July. The postponement will also delay the overdue €5 billion bail-out loan due to Greece, of which all but €100 million was due to go directly to the banks.

Earlier Wednesday the new finance minister, Yannis Stournaras, met with Papoulias to discuss political developments and preparations for the summit. Stournaras, who has not been sworn in yet as Greece’s finance minister, will to remain in Athens to prepare for a visit by troika officials. Outgoing Finance Minister Giorgos Zannias will join Papoulias at the EU summit.

President Van Rompuy said that growth must not be opposed to deficit reduction, as “both are two sides of the same coin”.

Leaders discussed a growth strategy “still based on the EU 2020 strategy” which “is the basis for our growth initiatives”. The three main pillars aim at mobilising EU policies to fully support growth; stepping up efforts to finance the economy through investments; strengthening job creation.

The heads or state or government also held an in-depth discussion of the latest developments in the euro area. In addition to noting that considerable progress has been made on various aspects, the commitment to safeguarding both financial stability in the euro area and its integrity was reaffirmed, and a general consensus was reached that the economic union has to be strengthened in order to make it commensurate with the monetary union.

President Van Rompuy added that in June he will report on the main building blocks and on a working method to achieve the latter objective.

An exchange of views on the political and economic situation in Greece showed that leaders wanted Greece “to remain in the euro area while respecting its commitments”. They expect that, after the elections, the new Greek government will choose to continue the vital reforms, as this is the best guarantee for a more prosperous future in the euro area.

We are fully aware of the significant efforts already made by the Greek citizens. The eurozone has shown considerable solidarity, having already disbursed together with the IMF nearly 150 billion euro in support of Greece since 2010. We will ensure that European structural funds and instruments are mobilised to bring Greece on a path towards growth and job creation.

Continuing the vital reforms to restore debt sustainability, foster private investment and reinforce its institutions is the best guarantee for a more prosperous future in the euro area. We expect that after the elections, the new Greek Government will make that choice.”

As regards the general conclusions of the European Council, Van Rompuy noted: “I called this meeting for colleagues to discuss how to boost growth in Europe. Tonight’s meeting was about putting pressure, focusing minds and clearing the air.”

He stressed: “The discussion about growth is not new. We already share a growth strategy and it has been a constant concern. However, our ongoing work on growth has been overshadowed by our vital efforts to ensure financial stability in the Eurozone. But it is no less important.

And there should be no misunderstanding: it is obvious that opposing “deficit reduction” and “growth” is a false debate. They are two sides of the same coin. Without sound public finances there can be no sustainable growth; but without sustainable growth, the measures to bring our debt levels under control will be done in vain…”

“First of all we discussed the three main pillars of a growth strategy that is still based on the EU 2020 strategy. The EU 2020 strategy is the basis for our growth initiatives. In the short term, we will structure our work around the following three pillars.

First, we need to mobilise EU policies to fully support growth; second, we need to step up our efforts to finance the economy through investments and thirdly we need to strengthen job-creation…”

I reiterated the Commission’s strong desire that Greece should remain a member of the euro area and that we will continue to do everything in our power for this to happen.

The euro area has shown unprecedented solidarity to Greece and its people. It has made a commitment to maintain financial support for Greece as long as is necessary, assuming Greece maintains its commitment to implement the structural reforms that are essential for a return to growth. Without this solidarity, Greece will not be able to return to growth and prosperity. I therefore underlined the importance of Greece maintaining the commitments it has made.”

Meanwhile, at the Summit of the European People’s Party (EPP), which took place today ahead of the informal European Council, EPP leaders adopted a declaration stressing their commitment to overcome the current economic difficulties and to restore confidence in the European economy. EPP leaders stressed in an announcement: “Since 2008, the EPP and its leaders have dedicated all their efforts to fight the current economic and financial crisis. The declarations that we adopted in Helsinki and in Marseille show our commitment to ensure fiscal policy sustainability and to, at the same time, remove all the obstacles that impede growth in Europe,” EPP President Wilfried Martens declared.

“Actions must be taken in order to combat the excessive levels of public debt. That’s why the EPP is supporting the swift ratification of the Fiscal Pact so that we can create a stable and predictable environment that will stimulate economic growth,” Martens added.

“In addition, a number of concrete steps such as providing a well-functioning, integrated and transparent financial market, initiating labour market reforms, creating the digital single market, cutting red-tape, can facilitate the return of Europe on the path of sustainable development. In an increasingly challenging globalized world, our focus should be on improving productivity and competitiveness,” the EPP President underlined.

“Therefore, the EPP heads of state and government and party leaders are committed to reaching an agreement on further steps towards completing the EU economic strategy until the meeting of the European Council on 28th-29th June 2012, and call on other Members of the European Council to adopt a similarly constructive attitude,” Wilfried Martens said.

Finally, the declaration from the Summit also underscores EPP’s solidarity to Greece: “During the meeting, all of our leaders stressed the importance of Greece remaining in the Eurozone. That’s why we offered our full support to the efforts of Nea Demokratia and its President, Antonis Samaras, and we are prepared to consider possible ways to strengthen investment, growth and employment complementing the necessary reform measures and respecting the commitments of the pursued programme,” the EPP President concluded.