Archive for Sunday, February 12, 2012

Greece passes new austerity deal amid rioting

February 12, 2012

Advertisement

— Greek lawmakers Monday approved harsh new austerity measures demanded by bailout creditors to save the debt-crippled nation from bankruptcy, after riots in Athens and other cities left stores looted and burned and more than 120 people hurt.

The historic vote paves the way for Greece’s European partners and the International Monetary Fund to release $170 billion, 130 billion euros, in new rescue loans, without which Greece would default on its mountain of debt next month and likely leave the eurozone, a scenario that would further roil global markets.

Lawmakers voted 199-74 in favor of the cutbacks, despite strong dissent among the two main coalition members.

In response, the Socialists and conservatives expelled 22 and 21 lawmakers, respectively, reducing their majority in the 300-seat parliament from 236 to 193.

Violence was also reported in six other cities, the worst in central Volos where the town hall and a tax office were damaged by fire, police said.

Sunday’s clashes erupted after more than 100,000 protesters marched to the parliament to rally against the drastic cuts, which will ax one in five civil service jobs and slash the minimum wage by more than a fifth.

At least 45 businesses were damaged by fire, including several historic buildings, movie theaters, banks and a cafeteria, in the worst riot damage in Athens in years. Fifty police officers were injured, and at least 70 protesters were hospitalized. Sixty-seven suspected rioters were arrested and a further 70 detained.

Prime Minister Lucas Papademos urged calm.

“Vandalism and destruction have no place in a democracy and will not be tolerated,” Papademos told Parliament just before the vote. “I call on the public to show calm. At these crucial times, we do not have the luxury of this type of protest. I think everyone is aware of how serious the situation is.”

Since May 2010, Greece has survived on a $145 billion, or 110 billion euro, bailout from its European partners and the International Monetary Fund. When that proved insufficient, the new rescue package was approved. The deal, which has not yet been finalized, will be combined with a massive bond swap deal to write off half the country’s privately held debt.

But for both deals to materialize, Greece had to persuade its deeply skeptical creditors that it has the will to implement spending cuts and public sector reforms that will end years of fiscal profligacy and tame gaping budget deficits.

Comments

WilburNether 4 years, 3 months ago

Listen to the little Greek piggies squeal as the flow of money borrowed from other people into the public trough at which they feed is threatened!

Flap Doodle 4 years, 3 months ago

Coming soon to a filthy "dude, I'm really angry" encampment near you.

Commenting has been disabled for this item.