Greece prepares to sell state assets

NEW: European Council president says a national consensus is neededAirports, highways, banks and more are for sale as Greece tries to raise billions of eurosEuro zone ministers say new loans are contingent on Greece raising money through privatizationTalks on a second bailout package follow three weeks of street protests and political upheaval

Athens, Greece (CNN) -- Greece is preparing to sell off billions of dollars worth of state assets including airports, highways and state-owned companies, as well as banks, real estate and gaming licenses, to meet international lenders' demands that it raise funds.

European finance ministers said Sunday that they were on track to give Greece a second huge bailout to keep the government afloat, but reiterated that Athens had to take tough measures to get it.

Greece has to raise 50 billion euros ($71 billion) through privatization by 2015, Eurogroup members said.

It also has to push through tough budget-cutting measures, they said, despite widespread protests in the country that forced a government reshuffle last week.

Prime Minister George Papandreou faces a vote of confidence in his new ministers this week as his party clings onto a wafer-thin majority in parliament.

Meanwhile, the country's economic crisis raises concerns for Europe's currency, the euro. A default on its debts by Greece, or other struggling nations such as Portugal or Ireland, could adversely affect the world economy.

European stocks fell in afternoon trading Monday as investors worried the Greek debt crisis could spread to other countries.

After meeting with Papandreou, European Council President Herman van Rompuy expressed his "strong support" for the Greek prime minister's economic reforms and said he had underlined the need for further efforts.

The package of reforms put forward by the government "needs to be supported by the Greek Parliament," he said in a statement, to pave the way for the release of fresh loans by mid-July.

"Given the length, magnitude and nature of required reforms in Greece, national consensus is a prerequisite for success," Van Rompuy said.

European finance ministers Sunday made an understated reference to the weeks of protests on the streets of Athens and the political upheaval that ensued.

"Ministers recognized the considerable progress achieved by the Greek authorities over the last year (and) are also conscious of the serious challenges that Greek citizens are facing in these difficult times," said members of the group, which consists of officials from countries in the Euro economic zone.

European ministers aim to keep Greece solvent -- and prevent its economic crisis from worsening and spreading through Europe and beyond.

The ministers' statement came a day after Papandreou called for lawmakers to back his latest round of budget-cutting measures, telling them, "The government must stop spending more than it takes in."

The harsh reforms designed to help reduce Greece's enormous budget deficit have so far led to tax hikes and public-sector job losses alongside already record-high unemployment.

There are fears that efforts to restructure Greece's debt could send shock waves through Europe's banking sector and spark investor panic similar to that in the 2008 collapse of Lehman Brothers, the U.S.-based global investment bank.

Papandreou faces opposition from his party over the austerity measures needed to secure an additional bailout package.

The Greek government's popularity has plunged recently, and anti-government protests turned violent Wednesday, as demonstrators threw gasoline bombs at the Finance Ministry and police fired tear gas at protesters, police said.

On June 9, the Cabinet approved a tough five-year plan for 2011-15 and introduced a bill in Parliament to put austerity measures into effect.

The latest measures include further cuts in public spending and more tax increases.

The government proposes reducing the public-sector workforce by 150,000; workers will also face changes in working hours, practices and wages. The plan also sets out changes to social benefits, including pensions and unemployment aid.

According to the Finance Ministry, these measures will help achieve 28.3 billion euros ($40.5 billion) in cuts from 2012 to 2015, and shrink Greece's public deficit to less than 3% of gross domestic product, in accordance with the EU target.

The government has said the passage of these additional measures is essential to Greece's securing the fifth portion of the original 110 billion euro ($158 billion) bailout package that Greece signed with the European Union and the International Monetary Fund last year to prevent the country from defaulting on its debts.

CNN's Diana Magnay and journalist Elinda Labropoulou contributed to this report.

CNN

Senate bill uses Libya assets for humanitarian aid (AP)

WASHINGTON – Leading senators of both parties say they will soon push legislation letting President Barack Obama confiscate up to $10 billion in seized Libyan government assets and use it for humanitarian aid in that war-torn country.

None of the money could be used to supply Libyan rebels with weapons or military equipment.

The bill comes four months into the rebel effort to oust Libyan leader Moammar Gadhafi. The U.S. has frozen more than $30 billion in Gadhafi regime assets, and opposition leaders have appealed repeatedly for financial help.

The legislation was announced by South Dakota Democratic Sen. Tim Johnson and Alabama GOP Sen. Richard Shelby, leaders of the Senate Banking Committee. It is co-sponsored by leading lawmakers from the Senate Foreign Relations, Armed Services and Homeland Security panels.

Yahoo! News

U.S. to use frozen Gadhafi assets for Libyans

ROME (AP) — Secretary of State Hillary Rodham Clinton says the Obama administration is moving to releasesome of the more than $30 billion it has frozen in Libyan assets to support opponents of Moammar Gadhafi.

A rebel fighter stands guard at a check point in the town of Al-Mekheili on Tuesday.

Speaking Thursday at an international meeting on Libya, Clinton said the administration would ask Congress for legislation that would allow it to tap portions of the money to help the Libyan people. The administration has already authorized up to $25 million in non-lethal military assistance to the opposition and has pledged $53 million in humanitarian aid.

Clinton said it was important to isolate Gadhafi and his regime, including by imposing travel bans on top officials, suspending Libyan embassies and sending envoys to work with the opposition's Transitional National Council.

Clinton said that ousting Libyan leader Moammar Gadhafi is the best way to protect Libya's civilians.

"We have made it abundantly clear that the best way to protect civilians is for Gadhafi to cease his ruthless, brutal attack on civilians from the west to the east, to withdraw from the cities that he is sieging and attacking and to leave power," Clinton said. "This is the outcome we are seeking."

Clinton spoke after holding bilateral talks with Italian Foreign Minister Franco Frattini ahead of a diplomatic meeting on Libya.

The meeting of the Libyan Contact Group at the Italian Foreign Ministry on Thursday is expected to seek ways to give financial support to the rebels, who have indicated they need $1.5 billion in the coming months.

The meeting of 22-nations involved in NATO's Libya campaign also includes the NATO chief, the Arab League, the leader of Libya's opposition council, and the leader of Libya's opposition council, Mustafa Abdel-Jalil, who used to be Gadhafi's justice minister.

Clinton said the meeting will seek "the most effective ways to delivery financial assistance" and other support to the rebels.

"Everyone is always impatient. We expect things to be done immediately in our very fast world," Clinton said.

Clinton said she would be formally presenting the United States' pledge to provide $25 million in surplus, nonlethal goods and commodities to support and protect the rebels.

A Libyan rebel spokesman, Mahmoud Shamam, put the estimated amount of money needed by the rebels in coming months at $1.5 billion. This would only be used for medical and food supplies, running hospitals and electricity, Shamam said in Rome.

The rebels also want to press their case for better weapons and equipment, Shamam suggested, saying Wednesday in Rome that they are "hungry for basic arms."

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