Greece's Cabinet Meeting to Discuss Spending Cuts and Privatization into 2015

Greece's Cabinet is meeting Monday to discuss deeper spending cuts and privatization measures through 2015, the Associated Press is reporting.

Greece has struggled with its finances despite last year's $145 billion three-year bailout package. The embattled economy has done little to quell market fears that it's unsustainable in the long-term.

According to the report, "Monday's meeting takes place as Greek borrowing rates shot over 16 percent for 10-year-bonds, hitting a new record margin — or spread — over the benchmark German rate."

Another difficulty in the complex equation is the recent resignation of the International Monetary Fund (IMF) Dominique Strauss-Kahn amid sexual assault allegations. He was a key player in the IMF-European Union bailout of Greece in 2010.

A judge agreed last week to free Strauss-Kahn from jail on $1 million bail on the condition he stay in a New York apartment under armed guard.

Though a search is underway for a successor, negotiations will certainly have a different tone.

Further, Fitch ratings agency downgraded the country's debt on Friday.

The AP report notes that "The European Union wants cross-party support in Greece for 2011-2015 austerity program, worth at least €23 billion ($32.8 billion). [Prime Minister George] Papandreou will on Tuesday meet opposition leaders."