LEAD: Greek debt talks end without full deal

Feb 9, 2012, 10:08 GMT

Athens - Greece failed to finalize the terms for a second bailout on Thursday, as Finance Minister Evangelos Venizelos headed to Brussels for a eurozone meeting in hopes of salvaging the deal and averting bankruptcy.

Negotiations in Athens stalled after party leaders in the coalition government refused to agree to international creditors' demands for 300 billion euros (398 billion dollars) in cuts to state and private pensions.

A statement issued by the prime minister's office said the three party leaders appeared to agree on all the demands, following eight-hour discussions overnight.

'The country's survival over the coming years depends on a bailout,' said Venizelos, before leaving the country.

'It will determine whether the country remains in the eurozone or whether its place in Europe will be in danger,' he said. 'We must look at the national interest and the interest of our children.'

Officials said representatives from the European Union, International Monetary Fund (IMF) and European Central Bank, known as the troika, had given the government 15 days to provide another alternative to meet the 300-million-euro shortfall.

Athens needs the second 130-billion-euro (172-billion-dollar) bailout to avoid a default on bond repayments due in March.

The three leaders backed major new austerity measures that include a 22-per-cent cut in minimum wage and firings of civil servants.

Athens has already accepted demands that the private sector minimum wage be reduced by 22 per cent, from 751 euros (995 dollars) to 590 euros, and by 32 per cent for those under 25 years.

The government also agreed to freeze all salary raises until the unemployment rate is reduced to 10 per cent, from the current 19 per cent as well as lay off 15,000 in 2012.

Unions said they would meet on Thursday to decide whether they would carry out further strikes and protests.