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Friday, 21 October 2011 - Greece adopts austerity bill amid protests |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? 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Policemen are set ablaze on fire by a petrol bomb thrown by protesters during clashes near the Parliament building in Syntagma square in Athens, October 20, 2011. Credit: Reuters/ Yannis Behrakis By Renee Maltezou and Harry Papachristou ATHENS | Fri Oct 21, 2011 2:10am EDT ATHENS (Reuters) - The Greek parliament approved a painful set of austerity measures on Thursday, defying violent protests in central Athens and a general strike which shut down much of the country. The struggling government of Socialist Prime Minister George Papandreou won the parliamentary vote with 154 votes in favor and 144 against, despite the decision by one deputy in the ruling party to oppose one article in the package. The victory should ensure the European Union and International Monetary Fund release a vital 8 billion euro ($11 billion) loan tranche which the government needs to keep paying its bills past November. The mix of deep pay and pension cuts, tax hikes and changes to collective bargaining agreements has been bitterly opposed and at least 70,000 people joined protests in Athens' Syntagma Square in front of parliament. Groups of black-clad youths clashed with rivals from PAME, a communist-affiliated labor group, and police later cleared the square. At least 74 people were taken to hospital with injuries and one man died of a heart attack on the fringes of the protest, but officials said he had not been hurt in the incidents. Papandreou now flies to Brussels for a meeting of European leaders on Sunday to try to prevent the debt crisis spinning out of control. A second summit is also expected to be held on Wednesday. "We are at a critical point, not only for us but for European history. I have never, in my memory, heard before from leaders of major European countries that there is danger of Europe coming apart," Papandreou told a cabinet meeting before the vote. "It is time for all of us now to assume our collective responsibility." As night fell, streets were strewn with rubbish and debris after hours of sporadic clashes but the square in front of parliament was cleared of demonstrators. The head of the Greek Communist party, Aleka Papariga condemned the violence which she said had been deliberately provoked by groups of "hood-wearers". "This was a pre-meditated attack," she told reporters, saying the rioters served the interests of what she termed "specific mechanisms". "No matter what happens, we're not leaving," she said. "There's no other way out, people have to take the situation into their own hands." HOSTILITY With Greece reeling from three years of recession and a mountainous public debt which has shut it out of bond markets, Papandreou's government is trapped between lenders demanding tougher action and public anger at the cuts. Hostility to the new austerity measures has also imposed a severe strain on the ruling PASOK party and Papandreou expelled Louka Katseli, a close family friend, after she voted against an article in the bill restricting collective wage agreements. "Today's vote is not a matter of party discipline, it's an issue of national responsibility," Papandreou said in a letter read out by the house speaker. Two other deputies who had threatened to rebel bowed to pressure from party leaders but deep unease remained at measures many feel punish the weak and will only drive the stricken economy further into the ground. "I will vote in favor, but this is the last time -- I am struggling with my conscience," said Vasso Papandreou, one of the dissenters who decided to go along with the package. "Enough is enough, society is despairing, the country is collapsing," she said to applause from other PASOK deputies. The general strike called by unions representing around half the Greek workforce was one of the largest protests since the start of the crisis two years ago and brought more than 100,000 people to the streets on Wednesday. "I will be protesting every day, it's a matter of survival. They must go," said 49-year-old Yannis Zahariadis, a civil servant and father of four. "I was forced to borrow money from my mother, a pensioner, to make ends meet." There has been widespread speculation the government will fall early, forcing a election before the scheduled date in 2013, but Papandreou has repeatedly ruled out stepping down early. "People sent a message on Wednesday that they have reached their limits and can't take any more austerity," said Theodore Couloumbis of the ELIAMEP think-tank. Banks, schools and government buildings were closed, transport services were hit and hospitals ran on skeleton staffing on Thursday and unions have vowed to continue their opposition with further stoppages. (Additional reporting by Lefteris Papadimas and Dina Kyriakidou; Writing by James Mackenzie; Editing by Robert Woodward) World Greece Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (2) mikeymouse03 wrote: What do these protestors expect??? They demanded these outrageous salarie for unions and pensions to retire at 53!! Their country is broke!! They want Germany and other responsible countries to pay their debt and ensure their irresponsible living?? Wake up America, this is going to happen here if we don’t balance our budget. The Chinese own 40% of our debt….they have lent to us as we have lived beyond our means. The spigot at the well is going to be turned off. Start austerity measures in your own homes and save like there will be no social security or medicare. Oct 20, 2011 10:45pm EDT  --  Report as abuse brian-decree wrote: IMF: “We own you now greece!!!” HAHAHAHAHA!!! Oct 20, 2011 11:33pm EDT  --  Report as abuse See All Comments » Add Your Comment Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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