Athens, Greece (dailynewyorknews) – Lawmakers in Greece voted Monday morning to approve a new round of austerity measures, has asked for a ransom of the new euro area debt-distressed countries, while Protests raged in the streets.
As legislators debated, police tear gas and stun grenades against the protesters outside the Parliament of Greece. Several buildings, including a bank, cafes and a movie theater in Athens were burned.
Twenty-five protesters and 40 policemen were injured in the clashes that took place across the city, police said. Authorities arrested at least 30 people.
“They protest because they feel that there is no end to their suffering financially. More and more (people) getting poorer every day and become homeless in Greece, especially Athens,”.
The package, which includes significant cuts in public spending, wages and pensions, will help pave the way for finance ministers to sign the euro area in the new batch € 130 billion bailout (172.6 billion of dollars). It was approved by a vote of 199-74.
Greece needs funds to meet € 14.5 billion in debt payments next month.
Before the vote, Prime Minister Lucas Papademos called for calm. “This vandalism, violence, who have no place in a democracy and will not be tolerated,” he told lawmakers, urging them to approve the agreement.
“At this critical moment, we have the luxury of these conflicts,” he said.
Echoing comments he made in a speech at the Council of Ministers on Saturday night, Papademos warned lawmakers, the government would not be able to pay wages, recovery services or import goods based on whether the plan was not approved. He spoke of the possibility of a “catastrophic failure”.
“It’s a hard program, a challenging agenda, which also painful sacrifices,” he said, adding that the plan would put Greece back on “terra firma”.
The protesters criticized the program demonstrated for several days.
On Saturday, some isolated skirmishes broke out as protesters gathered in Syntagma Square, opposite the parliament building, but the atmosphere was calmer than the day before.
Friday’s demonstration was dispersed after youths smashed the sidewalk and began throwing stones and pieces of marble and Molotov cocktails at police who responded with stun grenades and tear gas.
Even if the radical reform package accepted by Greece and the troika of the call – made by the European Commission, European Central Bank and the International Monetary Fund – was approved by Parliament, Greek lawmakers have yet to do more.
Jean-Claude Juncker, Luxembourg Prime Minister and head of the Eurogroup, which brings together finance ministers of the euro area, said Thursday that other insurance were also forced to Athens before the rescue plan can be paid.
Greece’s political leaders must agree to what will continue to implement measures after the next election, he said.
Athens also has to find another € 325 million in structural costs “,” cuts in 2012, Juncker said.
The rescue deal, which would result in significant losses for bondholders, is designed to help reduce the debt of Greece to 120% of GDP in 2020 to about 160% today.
Greece, which owes about € 330 000 000 000, was about to default before.
The nation has struggled to respond to the austerity measures and economic reforms that were a condition of its rescue in 2010. Meanwhile, the Greek economy is in recession for years and many analysts warn that austerity could worsen the situation.
Source: http://edition.cnn.com/2012/02/12/world/europe/greece-debt-crisis/index.html?hpt=ieu_c1
