Mon, May 28, 2012, 12:38 PM EDT - U.S. Markets closed for Memorial Day

Greece surveys riots damage after austerity vote

Greeks clean up damage after riots engulf Athens over new austerity deal voted in Parliament

ATHENS, Greece (AP) -- Firefighters doused smoldering buildings and cleanup crews swept rubble from the streets of central Athens on Monday following a night of rioting during which lawmakers approved harsh new austerity measures demanded by bailout creditors to save the nation from bankruptcy.

Rioters destroyed or seriously damaged 93 buildings, the Athens municipality said, while police said at least 45 were burned. They included nine listed as national heritage buildings, mostly in the neoclassical style, while dozens of stores and cafes were smashed and looted.

Smoke still rose from the gutted remains of an 1870 building which had housed one of the capital's most loved cinemas, the Attikon, since 1916.

"Criminals targeted all that was best in the city of Athens, its neoclassical monuments," said Thanassis Davakis, the Conservatives' cultural policy chief. "The damage must be swiftly redressed and the city's memory restored."

The stench of tear gas still hung in the air on Monday morning, choking passers-by, while traffic lights at many major intersections were out after being smashed. The municipality said cleanup crews had gathered an estimated 40 tons of broken marble and rocks from the streets of the center, while railings, drainage covers and paving stones from sidewalks also suffered extensive damage.

More than 170 people were hurt in the rioting which also broke out in other Greek cities. Authorities said 106 police needed medical care after being injured by gasoline bombs, rocks and other objects hurled at them, while at least 70 protesters were also hospitalized.

Police arrested at least 74 people and detained a further 92, while in several cases they had to escort fire crews to burning buildings after protesters prevented access.

Athens Traders' Association head Panaghis Karellas demanded the dismissal of Public Order Minister Christos Papoutsis, and said afflicted shopowners should receive state compensation.

"Once again, those in positions of responsibility, even though they should have been prepared, were unable to fulfill their duty and secure the well-being of citizens and visitors, cultural landmarks and historic buildings, public and private property and our country's international image," the association said in a statement.

The ESEE national commerce confederation said at least 40 shops were burnt or badly damaged.

"Most will most likely never open again," an ESEE statement said. "The center of the capital looks as if it has been bombed."

The rioting began Sunday afternoon after more than 100,000 protesters marched to the parliament ahead of a vote on drastic austerity measures that include axing one in five civil service jobs over the next three years and slashing the minimum wage by more than a fifth.

Lawmakers approved the bill in a 199-74 vote, to the relief of investors who pushed the Athens stock index up 4.7 percent.

The vote was crucial for the country to secure euro130 billion ($172 billion) in new rescue loans and avoid a potentially catastrophic default next month — bankruptcy could push Greece out of Europe's euro currency union, drag down other troubled eurozone countries and further roil global markets.

The new bailout deal, which has not yet been finalized, will be combined with a massive bond swap deal to write off half the country's privately held debt, reducing Greece's debt load by about euro100 billion.

However, it could take time before the country receives any of the cash. For both deals to materialize, Greece has to persuade deeply skeptical creditors it has the will to implement spending cuts and public sector reforms that will end years of fiscal profligacy and tame gaping budget deficits.

Eurozone finance ministers meet on Wednesday to discuss the issue, after refusing to approve the plan during a meeting last week, saying Athens had to first approve the new austerity measures.

But German Finance Ministry spokeswoman Marianne Kothe said the ministers will not make a final decision on the second aid package Wednesday. She said the bond swap agreement must be finalized first, and the ministers will focus on measures "necessary for the second Greek package."

Before signing off on the bailout, the eurozone ministers also want Greek political leaders to commit in writing to uphold the austerity plan even after the general election in April. Government spokesman Pantelis Kapsis said the written guarantees are needed by Wednesday.

Although the bill passed the Parliamentary vote, there was strong dissent among the majority Socialists and rival Conservatives who make up Greece's interim coalition government. The Socialists and Conservatives expelled the 22 and 21 lawmakers respectively, reducing their majority in the 300-member parliament from 236 to 193.

Germany gave the vote result a cautious welcome, with Foreign Minister Guido Westerwelle describing it as "a first significant step along the right road."

"However, the actual difficult work with implementing the reforms that have been agreed on is only just starting now," he said. "That is the decisive precondition for Germany and the other euro partners being able to stand by Greece with a further rescue package."

The new austerity comes after two years of deep spending cuts and repeated tax hikes that have sent unemployment soaring to more than 20 percent and left the country struggling through a fifth year of recession.

Those measures were taken in return for a first, euro110 billion ($145 billion) package of rescue loans, but despite the cutbacks, Greece repeatedly failed to meet its targets in reducing its debt and deficit and increasing economic competitiveness.

____

Geir Moulson and Juergen Baetz in Berlin and Nicholas Paphitis in Athens contributed to this report.

 

38 comments

  • paul  •  Cornelius, Oregon  •  3 months ago
    My thinking is if there are riots, high unemployment, they already in default.
  • sooku  •  Winter Park, Florida  •  3 months ago
    Why can't a country declare bankruptcy? (like Chapter 11 in US)
    • Barry 3 months ago
      Usually a chapter 11 bankruptcy ends up with the creditors owning what's left of the company. I'm not sure that the Greeks would be too cool with a bunch of banks owning the Parthenon and all government lands, buildings, etc.
    • sooku 3 months ago
      IF there was a mechanism like Chapter 11 in international law, a bank could take a share of tourist income from the Parthenon, say. Why not? Meanwhile the country could go about its business without the creditors holding a sword over their head and demanding all kinds of Draconian policy fixes.

      Without a Chapter 11 process, Greece, Italy etc. have no option but to declare default OR to give in and do as their foreign lenders dictate. Both these options are really bad for the country. Wait till it's America's turn - the day will surely come.
  • William  •  Las Vegas, Nevada  •  3 months ago
    Headline: "RIOTERS CREAT NEW STIMULUS PROGRAM" Governemnt to start hiring carpenters, masons and orther building trades to repair damage. Only experience tradesman need apply.
  • WS60  •  Elmhurst, Illinois  •  3 months ago
    These people do not know how to work for a full day the goverment was the cause of the landslide.
  • Tom  •  Chatsworth, California  •  3 months ago
    To those of us on the outside, the government's attempt to live within their means seems right and fair and normal. To the Greek people however, their lives are turned upside down because they have become accustomed to the irresponsible lifestyle their government encouraged and supported. The Greek people feel they have been terribly wronged and are having a national temper tantrum as they are being pulled, kicking and screaming, into a more normal financially responsible life.
    • John 3 months ago
      The same thing will happen here in the USA if our government does not take responsibility and correct the wrongs that they have created. Our government has over promised and under delivered. Our social security must be reduced and cuts to Medicare are in the cards for all of us. The responce to this post will be indicative of what will happen in the US within the next several years.
    • Gary R. 3 months ago
      You no nothing of which you speak. The debt is in large part interest as it is here. The people are reacting to high unemployment and very high taxes. They want what they are paying for. When you pay over 60% of your income to taxes and don't see it going to anything that benefits you or your family then I think that most here would do as they have. It's only a matter of time they are just a test case the money changers are owed lots of money and they are going to collect, this is only the beginning.
    • Joe 3 months ago
      So, what's your point there Gary R? That we should vote Obama in again?
  • James  •  Davenport, Washington  •  3 months ago
    Greeks burning down tax-paying businesses? Real smart.
  • Anita  •  Irvine, California  •  3 months ago
    i've always wanted to go to greece i guess i just have to wait
    • Tin 3 months ago
      The riots are confined, for the most part to Athens centre. They don't bother civilians. The police is their target not tourists or pedestrians. They target global companies like Starbucks, McDonalds, banks. They boycott the larger companies in favor of smaller stores too. You don't even have to go near Athens because you can just go from the airport to the islands. Recommended islands: Crete, Rhodes, Corfu, Santorini..........a lot of beautiful places to go to in Greece.
    • Anita 3 months ago
      yeah but i really want to go to athens for at least a day! but it doesnt matter cause im broke
  • Karl  •  Värmdö, Sweden  •  3 months ago
    I don't know if there is any other way out for Greece than default. They are already in default in my opinion. I don't know if default such a bad thing. I'm not smart enough for that. I think that Banks that made stupid investments in Greek bonds are more to blame here than the Greeks. If there are free money, most people will probably take it and spend it. I guess that's human nature. It's the banks responsibility to make sure the one they are lending money is able to pay it back. Not vice versa. How ever, the Greek politicians have fooled to the Greek people into thinking they lived in a more prosperous country then they did. So in one way nothing is taken away from the Greek people. Only what they were used to. It's like waking up to reality. And with Nothing else to offer than Olive Oil and Tourism it's hard. Greece will NEVER be able to pay back this kind of money we are talking about, not even close. I guess I am suggesting that the rest of Europe takes the blame and share the pain because we lent Greece money in the first place. Or let them join the EMU.
  • Donna  •  Raleigh, North Carolina  •  3 months ago
    The Germans can teach the Greeks how to do a days work for a days pay. That's a start. Also how to collect taxes and keep tax records.
  • Mike  •  3 months ago
    Greece will default and go back to the Drachma. All this song and dance is only prolonging the pain and increasing the overall financial damage that will be done. Greece is not self-sustainable and is not willing to be made so.
    • cathy 3 months ago
      then we can all go to Greece on an affordable a vacation
  • Patriot Alice  •  3 months ago
    The department of: Forgotten things..
  • Patriot Alice  •  3 months ago
    The department of Riot Surveys...The Department of Riot Cleanups...The department of Riot Startups...How many "Jobs" will these "Create"?
  • Patriot Alice  •  3 months ago
    The department of: I'll think about it"
  • Patriot Alice  •  3 months ago
    The department of: I'll get back with you...
  • Jim  •  Nashville, Tennessee  •  3 months ago
    This is what happens when socialism grips a country. The Greek people have only themselves and their corrupt polititians to blame for their mess. They voted for polititians who opened up the cookie jar for all to grab (in return for votes) and look what it has led to. Wake up America, throw the big spending socialists out and close the door behind them!
    • clavy 3 months ago
      exactly. people are all the same. we want to get more, for doing less. when you set up a system that rewards that. . . well you have yourself a karl marx utopia. which one of those ever worked out?

      i would also advocate that a system that rewards people for sitting in chairs exchanging promises and intangibles for billions of dollars is almost as dangerous. .
    • Karl 3 months ago
      It's funny how Americans don't seem to know anything about socialism. How they fear it like they feared communism and how it's a curse word in the US. I live in Sweden, a Socialist country. A country MUCH MORE solvent than the US. Socialism is not communism. You just take care of the people living next door. Socialism is not a bad thing. The socialism we have here is not Hugo Chavez, far from.

      Right now I'm going to School, studying for a new profession. It's free because they government pays the school. I also get money from the government, a loan to be able to eat and live during this time. Money which I have to pay back later of course. Without the government I would never have had the money to pay for any of these things. Not get a job and provide my share of the taxes back to the system. It's a fair and nice system. We take care of fellow men. I have no idea how you guys make it over in the US. Paying for school and have to take loans from private companies. So may US students are so deep down in dept.
      The system over here is so nice so of you want you can come here and study for free! You can even take a loan from the government to pay for your expenses while living here. We have a few very good universities here. KTH, Chalmers, Lund, Karolinska.

      I don't think that people should get payed for doing nothing but I don't think that the society should turn it's back on people that have a hard time, lost their job or for any other reason are in a mess. If you got in a situation one day where you yourself needed help, you would be glad the help was there for you.

      Remember. Socialism is not the same all over the world. Hugo Chavez style is nothing we support over here. It's scary what he is doing. I don't even know if that's is socialism. It's more like a dictatorship just being able to take over companies and factories like that. It's not socialism.
  • WS60  •  Elmhurst, Illinois  •  3 months ago
    The same thing will happen in this country if we do not cut back on giving people welfare that dont deserve it and social benifits that keep pepole from going out and finding work all great countrys fall from within look at the roman empire.
  • Roger  •  3 months ago
    stupid......nothing is FREE
  • BTN  •  Arlington, Virginia  •  3 months ago
    I feel bad for the Greeks but they still don't get it. They just passed an austerity measure, yet some still don't get it:

    ""The damage must be swiftly redressed and the city's memory restored." - Most of it must be written off

    "(A)fflicted shopowners should receive state compensation" - this is what private insurance is for

    Where's the money supposed to come from?
  • Steve Spencer  •  Bellemont, Arizona  •  3 months ago
    I'm afraid that if we re-elect Obama, this is what the US will look like in a couple of more years.
  • Conservative  •  Orlando, Florida  •  3 months ago
    Irresponsible, socialism going down the drain, time for pain, no pain no gain. Vote Obozo out before we have the same.
 
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