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Greek P.M. says country needs reform

ATHENS, Greece, June 18 (UPI) -- Massive international loans propping up its economy give the Greek government little flexibility on reform, Prime Minister Andreas Papandreou said Friday.

The prime minister said opposition parties and trade unions will have the chance to comment on proposed changes in pension and labor relations laws, the Athens newspaper Kathimerini reported. But, he said, the government has "a huge responsibility to save the economy."

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The General Confederation of Greek Labor and the largest government employees union have called a one-day general strike for June 29 to protest proposed changes that would give employers more freedom to lay off workers. Leaders call the changes announced Wednesday "unfair and a violation of the constitution."

Greece has signed an agreement with the International Monetary Fund, the European Union and the European Central Bank for a 110-billion euro (almost $140 billion) loan to keep the country solvent. Many European leaders acted reluctantly, with German Chancellor Angela Merkel under pressure from her own citizens in a country where the retirement age is higher than in Greece.

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