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Clashes in Greece ahead of key austerity vote

7 November 2012 Last updated at 19:57



Protesters in Greece have clashed with riot police as MPs prepare to vote on a fresh round of austerity measures to secure the next round of bailout funds.

The police fired tear gas towards the protesters when they were attacked with petrol bombs in the capital Athens.

Parliament is due to vote on 13.5bn euros ($17.3bn; £10.5bn) of measures, including tax rises and pension cuts.

PM Antonis Samaras said without the bailout Greece would run out of money this month and face "catastrophe".

he fresh package of austerity measures - Greece's fourth in three years - is meant to close Greece's budget deficit, lower its huge debt burden and make its economy more competitive.

It includes a two-year increase in the retirement age from the current average of 65, as well as salary cuts and labour market reforms including cuts to holiday benefits, notice periods and severance pay.

Workers fear this will just make it easier and cheaper for them to be fired at a time when unemployment has already soared to 25% and a five-year recession means there are few job prospects.

On Wednesday, tens of thousands of demonstrators continued their protest in Syntagma Square - outside the parliament building in the heart of the capital.

The protesters chanted: "People - don't bow your heads!"

Some in the crowd held giant flags of Greece, Portugal, Italy and Spain - four of the eurozone's most heavily-indebted states.

The riot police - who sealed off the parliament - later fired tear gas after the demonstrators attacked them with petrol bombs and flares.

Protests are also taking place in other big cities across Greece.

The Greek unions are staging what they described as the "mother of all strikes" - a 48-hour walkout which culminates on Wednesday evening.

The third major strike in just two months brought public transport to a halt and shut schools, banks and government buildings.

Alexis Tsipras, leader of the left-wing opposition party Syriza, said: "The bailout policies are completely catastrophic, outrageously absurd, and an utter failure.

"Let's not kid ourselves. The bailouts can no longer be acceptable, not even under the toughest blackmail," he told the Efimerida Syntakton newspaper.

The government is confident it will get a slim majority when the vote takes place, the BBC's Mark Lowen in Athens reports.

But this level of resistance on the street is a reminder that implementing the measures will be extraordinarily difficult, our correspondent says.

Wednesday's vote on the cuts will be followed by a second vote this Sunday on Greece's revised budget for 2013.

A positive vote on both is required for Greece to secure 31.5bn euros in fresh loans from the European Union (EU) and the International Monetary Fund (IMF).

Mr Samaras has said that without this money, which will be used largely to recapitalise the country's banks, the country will be bankrupt by 15 November.

However, the Democratic Left Party, which is the junior member of the three-party governing coalition, is refusing to back the austerity package.

The second biggest coalition party, the socialist Pasok, is also facing a rebellion by some of its MPs.

Despite the opposition, analysts are optimistic the fresh cuts will be approved.

Mr Samaras is believed to have the support of about 154 votes in the 300-seat parliament, assuming there are no more defections.

http://www.bbc.co.uk/news/business-20221111


Added: Nov-7-2012 Occurred On: Nov-7-2012
By: gemini
In:
Regional News, Politics
Tags: austerity
Location: Greece (load item map)
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