Greece riots as new austerity measures passed

http://www.myfinances.co.uk/investments/2012/02/13/greece-riots-as-new-austerity-
measures-passed
February 13th, 2012

The Greek parliament has approved a new set of austerity measures even as thousands of members of the public demonstrate against the plans.

A new set of measures which include reducing the minimum wage by 20 per cent, a further 15,000 public sector job cuts and the liberalization of labour laws was passed in the Greek parliament by 199 votes to 74.

Scores of deputies were expelled from their parties for not voting for the bill. Passing the new laws is one condition demanded by the eurozone and IMF in return for Greece receiving a €130 billion bailout that it needs to make the next repayment on its massive sovereign debt to avoid going bankrupt.

Protestors outside parliament rioted and clashed with police as stones and petrol bombs were thrown and buildings set on fire. The protests extended to other cities away from Athens, including the islands of Crete and Corfu. Dozens of police and protestors were injured in clashes.

The public believe that the price for the bailout funds is too much and that the bailout funds are not worth the price of the austerity measures.

Greek Prime Minister, Lucas Papademos called for calm and said that the new austerity measures would “set the foundations for the reform and recovery of the economy”.

The new laws will now need to be ratified by eurozone ministers at a meeting in Brussels on Wednesday before bailout funds can be released.

Greek Finance Minister Evangelos Venizelos said that the situation is changing quickly and that the question was not "whether some salaries and pensions will be curtailed, but whether we will be able to pay even these reduced wages and pensions".

"When you have to choose between bad and worse, you will pick what is bad to avoid what is worse," he said.

If Greece were unable to pay its debts and went bankrupt it could start a break-up of the euro.