Greek government defies protests to approve more austerity

Wed Nov 7, 2012 6:00pm EST
 

By Lefteris Papadimas and Harry Papachristou

ATHENS (Reuters) - Greece's government voted by a razor thin margin on Thursday to approve an austerity package needed to unlock vital aid and avert bankruptcy, despite an internal rift and violent protests at the gates of parliament.

Lawmakers approved the spending cuts, tax hikes and measures making it easier to hire and fire workers after nearly 100,000 Greeks waving flags and chanting "Fight! They're drinking our blood!" descended on Syntagma Square in central Athens.

Despite the abstention of their junior ruling partner the Democratic Left, Prime Minister Antonis Samaras's New Democracy Party and its Socialist PASOK allies passed the 500-odd page bill shortly after midnight.

They mustered 153 of parliament's 300 seats, with New Democracy and PASOK expelling seven deputies from their ranks for not backing the measures.

Earlier in the evening, clashes erupted when a handful of protesters tried to break through a barricade to enter the assembly. Riot police responded with teargas, stun grenades and, for the first time in an anti-austerity protest here, water cannon.

There was also chaos inside the assembly, where parliamentary workers briefly stopped the session by walking out when they discovered their salaries would be cut.

The bill covering the bulk of 13.5 billion euros' ($17.2 billion) worth of belt-tightening measures is a precursor to the 2013 budget law, which the government is expected to push through on Sunday.

If it does, it is expected to unlock a 31.5 billion euro aid tranche from the International Monetary Fund and European Union that Greece needs to shore up its banks and pay off loans.   Continued...

 
The Acropolis hill with the Parthenon temple is covered with smoke during during a violent demonstration in central Athens November 7, 2012. Greek police fired teargas and water cannons to disperse thousands of protesters who flooded into the main square before parliament on Wednesday in a massive show of anger against lawmakers due to narrowly pass an austerity package. REUTERS/John Kolesidis