Home > Uncategorized > Greece MPs back austerity plans amid mass protests

Greece MPs back austerity plans amid mass protests

Protesters set fires and continued to clash with police on Wednesday evening

The Greek parliament has given initial approval to new austerity measures, as clashes broke out between protesters and police in Athens.

As a 48-hour general strike paralyzed the country, a march by tens of thousands of people outside the parliament turned violent.

Parliament will vote a second time on the details of the bill, which includes pay cuts and tax rises, on Thursday.

Greece is saddled with a huge public debt and an economy in deep recession.

There are fears the government could default and set off a wider crisis that could engulf other struggling eurozone countries such as Spain and Italy.

With Greece unable to borrow long term on international bond markets to finance its debt, the EU and IMF have stepped in with two bailout packages.

But they have demanded tough budget cuts in return, which have angered many in Greece who say the medicine is killing the patient.

Running battles

As tens of thousands of Greek protesters marched to the parliament in Athens to protest the cuts, riots broke out.

Some protesters threw petrol bombs and stones at police who fired tear gas as running battles broke out.

The 48-hour strike, called by both public and private sector unions, has closed government departments, businesses, offices and shops and cancelled transport services.

Domestic and international flights were grounded as air traffic controllers staged a 12-hour walkout.

Parliament is due to vote on the details of the new round of cuts on Thursday. They include further cuts to pensions and salaries and temporary lay-offs of 30,000 public sector workers.

But the government is struggling to convince lenders that it is cutting effectively enough. Greece says it needs the next 8bn euros ($11bn; £7bn) of a bailout agreed to last year or it will soon be unable to pay its bills.

European leaders and global finance chiefs are in talks over the eurozone crisis ahead of an EU summit on the weekend.

French President Nicolas Sarkozy flew to Germany late on Wednesday to meet German Chancellor Angela Merkel and senior officials from the European Central Bank and IMF.

Neither leader gave any details about what had been discussed.

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Categories: Uncategorized
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