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Greece scraps order of four Italian transport planes

Cash-strapped Greece has cancelled the 50-million-euro ($66-million) purchase of four Italian C-27 transport planes, a government source said following a cabinet meeting Thursday.

Greece ordered 12 planes from aerospace firm Alenia in 2007 and has already received eight of them.

Greece had already told the International Monetary Fund and the European Union, which have bailed out the debt-stricken nation, it would cancel the contract as part of public spending cuts.

The decision to scrap the purchase was taken during a restricted cabinet meeting chaired by Prime Minister Lucas Papademos and involving just six key ministries including defence and foreign affairs.

It comes ahead of a May 6 parliamentary election, when fed-up Greeks will vote after months of gruelling austerity cuts.

by Shirley Wibisono © 2012 AFP

Source : AFP

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Published on ASDNews: Apr 26, 2012