* Inspectors from international lenders return to Athens
* Will decide whether to give more funds from bailout deal
* Greece behind on targets set as condition of bailout
* PM vows to push ahead with spending cuts, attacks foreign
critics
ATHENS, July 24 (Reuters) - Greek Prime Minister Antonis
Samaras said on Tuesday he would push ahead with implementing
deep spending cuts and lashed out at unnamed foreign officials
for sabotaging his country's efforts to solve its problems.
Samaras addressed members of his party as inspectors from
the troika, the trio of international lenders keeping Greece
afloat, returned to Athens to relaunch its stalled economic
plan.
The officials from the International Monetary Fund, European
Commission and European Central Bank must decide whether to keep
the nation hooked up to a 130-billion-euro lifeline or let it go
bust.
In his speech, Samaras said some foreign officials were
making irresponsible comments, predicting Greece won't make it.
"I say it openly and publicly, they undermine our national
effort. We do all we can to bring the country back on its feet
and they do all they can so we can fail," he said.
He did not say who exactly he was referring to but on Sunday
German economy minister Philipp Roesler said he did not expect
Greece could fulfill its requirements and that that would mean
no more money for Athens.
Greece has fallen behind targets agreed as conditions of its
bailout deal, mainly due to three months of political limbo as
it struggled to form a government after two inconclusive
elections but also because of resistance to reforms from unions
and special interests.
While seeking to re-negotiate some of the bailout terms,
Samaras said Greek lawmakers had to demonstrate progress on
spending cuts.
"There are certainly delays in this year's agreed programme
and we must quickly catch up," said Samaras. "Let's not kid
ourselves, there is still big waste in the public sector and it
must stop."
Greece blames a deeper than expected recession, seen at
about 7 percent of GDP this year, for missing its tax revenue
and budget deficit goals and wants two more years' breathing
space to avoid inflicting harsher fiscal measures on a public
already enduring tax hikes, spending and wage cuts and record
joblessness.
Samaras said the economy might shrink by more than 7 percent
in 2012 and it would take Greece two years to return to growth.
Unemployment was close to 24 percent, he said.
Troika officials say Athens is failing to implement measures
that will boost growth, such as planned privatisations, a major
tax reform and the opening of closed markets and professions.
"The programme has not produced the desired results because
it was not implemented. We must first see the government fulfil
its commitments and then decide if it works or if it needs to be
adjusted," a troika source told Reuters on condition of
anonymity.
A troika team arrived in Athens late on Monday. The heads of
the mission arrive later in the week and are scheduled to see
Finance Minister Yannis Stournaras on Thursday.
Samaras will see the troika chiefs on Friday, after meeting
the political leaders backing his government.
Samaras is under political pressure from the Socialist and
leftist parties in the coalition to demand a renegotiation of
the bailout terms which they say punish the poor.
"First we must show the country respects its targets," he
said. "We will then seek to extend the programme as soon as
possible."
REGAINING CREDIBILITY
Stournaras, an economist who chaired a respected think-tank
before becoming minister, has said he will not ask for an
extension or change of terms before proving the new government's
credibility - starting with 11.7 billion euros' worth of cuts
for 2013-14 that should have been drawn up in June.
The government has come up with only about 8 billion euros
of cuts and is scrambling to close the gap, Greek officials
said.
In official statements, both the EU and the IMF have said
the programme was behind schedule and needed to be re-launched
before Greece could get any more funds, with the next tranche
not expected to be disbursed before September.
"An IMF mission will start discussions with the country's
authorities on July 24 on how to bring Greece's economic
program, which is supported by IMF financial assistance, back on
track," an IMF spokesman said on Monday.
In the meantime, the lenders may have to extend Greece a
bridge loan to cover a 3.2 billion euro bond payment due in late
August to stop it going bust and putting Italy and Spain in the
markets' firing line.
Analysts say softening the stance on Greece would create
problems elsewhere. For example, if the troika agrees to give
Greece two more years to cut its deficit to 3 percent of GDP it
might have to lend it an extra 40 billion euros, depriving funds
from larger troubled members such as Spain, said Ben May of
Capital Economics.
"Policymakers face a tough task to reach an agreement on
what Greece must do to receive future bail-out loans that is
deemed acceptable to all parties. For now, then, we still think
that Greece could exit the single currency by the end of the
year," he said in a report.
The troika will stay as long as needed, with some officials
saying the visit would last at least a week and possibly longer.
It may well ask for additional measures this year, which would
almost certainly rock the ruling coalition and ignite protests
from the radical leftist SYRIZA opposition party.
"The government has no business discussing with three clerks
on how to implement a failed programme," SYRIZA president Alexis
Tsipras told his parliamentarians.
"New tough austerity measures are insane and will lead us to
bankruptcy and away from the euro zone."