Europe exchange traded funds (ETFs) continued to weaken Wednesday despite Greece’s promise to impose more severe austerity measures in an attempt to persuade lenders to keep providing bailouts necessary to avoid a potential default.

Vanguard Europe Pacific ETF (NYSEArca: VEA) was down 1.4% in afternoon trading.

The Greek government has agreed to reduce pensions of more than $1,642.913 a month by 20% and cut payments for former state workers who retired before 55, according to Reuters.

“We tried to find the most just measures possible,” an officials who attended the cabinet meeting said.

Additionally, the government will extend new real estate tax hikes, which were set to expire next year, to 2014. Thirty thousand civil servants will also be put into “labor reserve” as they are given 12 months to find work outside of the state sector and take a 60% pay cut. [Greece Again Weighs on European ETFs]

“This choice sends a message to our partners and the markets that Greece both wants and is able to fulfill its commitments and remain at the core of the Eurozone and the EU,” Government spokesman Elias Mossialos stated, report Nicholas Paphitis and Derek Gatopoulos for the Associated Press.