Athens clashes in Greece over Greece Eurozone austerity deal
Protesters
have clashed with police in the Greek capital Athens, amid anger over
fresh austerity measures approved under pressure from Eurozone
ministers.
Demonstrators threw rocks and petrol bombs at police, who
responded with tear gas. The clashes came after trade unions began a
48-hour strike.Parliament is expected to vote on a package of cuts and reforms on Sunday.
Eurozone ministers say MPs must approve it before Greece receives 130bn euros ($170bn; £110bn) in bailout funds.
They are also demanding further budget cuts of 325m euros.
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Parliamentary approval should be the least of the problems. The coalition controls a large majority of MPs so even a backbench rebellion shouldn't sink the package. The 325m euros in extra savings are possibly feasible too - there is talk that defence could be further cut.
But written commitment to the cuts from the party leaders could be the sticking point. It's a tactic that Brussels has tried before and it faced stiff resistance from politicians who talk of national humiliation.
But the price of failure is too high for Greece's government, which fears bankruptcy and a potential exit from the euro. And Eurozone leaders are unlikely to cut Greece loose either. Germany's Angela Merkel has said "if the Euro fails, Europe fails."
Analysis
And so it wasn't enough. Days of political horse trading to agree on a package of cuts and still Brussels has said "do more". The frustration here in Athens is palpable.Parliamentary approval should be the least of the problems. The coalition controls a large majority of MPs so even a backbench rebellion shouldn't sink the package. The 325m euros in extra savings are possibly feasible too - there is talk that defence could be further cut.
But written commitment to the cuts from the party leaders could be the sticking point. It's a tactic that Brussels has tried before and it faced stiff resistance from politicians who talk of national humiliation.
But the price of failure is too high for Greece's government, which fears bankruptcy and a potential exit from the euro. And Eurozone leaders are unlikely to cut Greece loose either. Germany's Angela Merkel has said "if the Euro fails, Europe fails."
A third condition set by the
Eurozone ministers is that the Greek coalition gives "strong political
assurances" on the implementation of the programme".
The ministers - who met in Brussels on Thursday - said the
conditions must be fulfilled by next Wednesday, when they are due to
meet again to consider releasing the bailout funds.Greece cannot service its huge debt, and there are fears that a default could endanger Europe's financial stability and even lead to a break-up of the Eurozone.
The country is already reeling from the effects of an earlier round of austerity that followed a previous bailout. Those cuts triggered widespread unrest and violent protests.
Greece is deep in recession, with unemployment rising above 20%.
The unions have condemned the latest proposed cuts as "painful measures" that would create misery.
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