Greek Prime Minister George Papandreou says he will expand a civil service pay freeze, broadening an austerity program aiming to lift the country out of a severe debt crisis.
He also announced increases in fuel tax and said retirement ages should rise -- but he did not give details of amounts.
Papandreou had previously said civil servants earning more than euro2,000 a month would have their salaries frozen. But during a televised address to the nation Tuesday evening, he said no civil servants would get salary raises beyond seniority increases. Papandreou's speech came a day before the European Commission is to issue an assessment of Greece's plan to curb its runaway budget deficit, which is currently more than four times the European Union limit of 3 percent of economic output.