Pension cuts remain a sore point in talks between gov't, creditors

Pension cuts due to come into effect in January remain a sore point in talks between Greece and its international creditors, with both sides apparently unwilling to compromise amid speculation that the deadlock could trigger early elections. 

Government officials are still determined to convince the creditors to suspend the measures, despite last week's furore over a false report suggesting that foreign auditors were willing to back down.

The report, by the state-run Athens-Macedonian News Agency, prompted a firm denial by the European Commission. The denial appears to have come as something of a surprise to the government, which had regarded the EC as an ally.

European Economy and Monetary Affairs Commissioner Pierre Moscovici had suggested that there could be some flexibility in reforms. However, EC President Jean-Claude Juncker and other high-ranking European...