Thousands of protestors massed in Greece under heavy police watch yesterday after the government approved unpopular austerity cuts to get vital rescue funds and avoid the “chaos” of a default.
A disorderly default would plunge our country into a disastrous adventure- Prime Minister
More than 3,500 people streamed to Syntagma Square in Athens on a second day of protests and a general strike, with hundreds of riot police standing guard following clashes that erupted during rallies on Friday.
But only a few minor scuffles took place and the protest ended peacefully.
The coalition government, weakened by the defection of six of its members, approved in the early hours the painful belt-tightening measures that the EU and the IMF have demanded in return for a €130 billion rescue package that Athens needs to avoid default in March.
“We are here to say no to what they want to impose on us,” said Sophia, a 38-year-old researcher, as other protestors held up a banner reading: “They Are Ruining Our Lives.”
Turnout was affected by the general strike that halted public transport to a halt in the Greek capital, with no metro, bus or trolley services, but more were expected to demonstrate today when the measures go to a parliamentary vote.
In the northern city of Thessaloniki, police estimated a crowd of some 4,000 at a similar protest.
As the cabinet debated the measures on Friday, Prime Minister Lucas Papademos issued a stern warning after six members of his coalition government – four on the far right and two socialists – resigned in protest at the new cuts.
“A disorderly default would plunge our country into a disastrous adventure,” he told the cabinet. “It would create conditions of uncontrolled economic chaos and social explosion.”
“Sooner or later, (Greece) would be led out of the euro,” he warned.
The remaining cabinet members finally approved the deal and the Athens News Agency (ANA) said parliament would vote on it on today, with demonstrations expected during the vote.
Greece was explicitly told by its eurozone partners last week it must agree to austerity measures in order to secure the release of further loans under the 130 billion euro bailout pending since October.
Greece needs the money to stave off bankruptcy on March 20, when Athens must repay nearly 14.5 billion euros in maturing debt.
Three texts will be put to today’s vote: measures to recapitalise Greek banks, an authorisation for Papademos and the finance minister to sign the eurozone bailout, and a bond swap with private creditors designed to wipe out around €100 billion from Greece’s €350 billion debt, ANA said.
Details of the austerity measures will be included in a follow-up law to be introduced in the next two weeks, the agency said.
Eurozone finance ministers on Thursday delayed a decision on a new bailout, giving Greek officials less than a week to meet tough conditions in exchange for fresh aid.