Labour Minister Louka Katseli on Thursday urged for "flexibility and adjustment, instead of business closures", offering a direction over labour relations in the country.

In a radio interview, the Greek minister stressed that "competitiveness will be not achieved through downgrading the living standards to the level of poverty", while nevertheless adding that certain sectors need to readjust labour costs to ensure job positions.

She reiterated there will no more cuts in wages and pensions in the public sector, nor any more tax increases, while she stressed that business labour contracts "reinstating order" in the market.

"The national challenge is to move forward and support the viability of enterprises. It is true that unemployment is rising, but I want to be optimistic that we will not reach the figures predicted in studies," she said.

A priority was to support OAED - the Manpower Employment Organisation- combatting "informal labour" and social insurance contribution evasion.