Mon, May 28, 2012, 12:40 PM EDT - U.S. Markets closed for Memorial Day

Greeks clean up after riots against 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.

At least 45 buildings were burned, including one of the capital's oldest cinemas, while dozens of stores and cafes were smashed and looted.

The stench of tear gas still hung in the air on Monday morning, choking passers-by. 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.

The rioting began Sunday afternoon ahead of a landmark vote in Parliament on yet more austerity measures. The drastic cuts debated in parliament 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 5 percent on Monday.

The vote paves the way for Greece's international creditors to release euro130 billion ($172 billion) in new rescue loans to prevent the country from 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 actually receives any of the cash. For both deals to materialize, Greece has to persuade its deeply skeptical creditors that 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 are to 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.

German Finance Ministry spokeswoman Marianne Kothe said Monday that the ministers will not make a final decision on the second aid package for Greece on Wednesday. She said the bond swap agreement must be finalized first, and the ministers will focus on all steps and 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.

In the vote on the new bill, there was nevertheless strong dissent over the austerity package among the majority Socialists and rival Conservatives who make up Greece's interim coalition government. The parties disciplined the dissenters in their ranks, with the Socialists and Conservatives expelling 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 in a statement. "That is the decisive precondition for Germany and the other euro partners being able to stand by Greece with a further rescue package."

"Embarking on implementation is decisive now," Westerwelle said.

German Chancellor Angela Merkel's spokesman, Steffen Seibert, said the reforms "show the will and readiness of the Greeks to make great efforts of their own ... to put the country on the right track."

"These measures, and we really have to note this, are not just saving for the sake of saving, they are not cutting for the sake of cutting — this is about reforms in every political area," he said. "These are measures that are meant to restore step by step the financial room for maneuver that the country needs for new jobs and new growth to emerge."

An upcoming report by Greece's international debt inspectors from the European Commission, European Central Bank and International Monetary Fund — known as the "troika" — will be key to determining whether the measures Athens has taken suffice to allow it to carry its debts and get further aid.

Sunday's clashes erupted after more than 100,000 protesters marched to the parliament to rally against the drastic cuts.

Finance Minister Evangelos Venizelos insisted the country's economic survival hinged on the passage of the new measures.

"The question is not whether some salaries and pensions will be curtailed, but whether we will be able to pay even these reduced wages and pensions," he said in Parliament before the vote. "When you have to choose between bad and worse, you will pick what is bad to avoid what is worse."

The further cuts come 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 from other eurozone countries and the International Monetary Fund, but despite the cutbacks, Greece repeatedly failed to meet its fiscal targets in reducing its debt and deficit and increasing economic competitiveness.

____

Geir Moulson and Juergen Baetz in Berlin and AP Television in Athens contributed to this report.

 
  • NunYa B. Ness  •  3 months ago
    Thanks to rioters the austerity measures just got a few million dollars worse.
    • Juan 3 months ago
      Burn your country down. Now you will feel better. Those with any money and education should make plans to leave the country.
    • j 3 months ago
      The king of England probably thought the same thing about "America"
  • ENY  •  Miami, Florida  •  3 months ago
    Greece will eventually default on their debts. The recent "deal" just postpones the default. There are some things you cannot prevent. Greeks evade paying taxes, have too many benefits and not enough resources to pay for it. When they default the European Union will accept the fact that there is no choice but to expel them from the Euro. No emotion here only truth. Any other prediction is fantasy.
    • Forrest 3 months ago
      A lot of the Greeks will probably relocate to other countries. Although most of Europe isn't much better. It would really help them if they just went back to using drachmas.
    • wjmdurham 3 months ago
      Go back to the Drachm? And just whom would accept this currency that the Greeks coud inflate to devalue by 90% at a whim? Or just demonitize and cheat the holder of 100%. The Drachm could be used in Greece by Greeks but the rest of the world would be FOOLS if they didn't demand hard currency like the $US, Euto, UK Pound, or gold for all international transactions.
    • Forrest 3 months ago
      At least their currency would reflect its true value. Then their exports would skyrocket, because they would be cheaper. This is what needs to happen for them to recover.
  • Ro  •  3 months ago
    Tomorrow"s headline: Greece debt deal collapses.
  • mactruth55  •  3 months ago
    Yeah, burning down small businesses is always a good idea, idiots.
  • A Yahoo! User  •  3 months ago
    Congress has been sent our "Road to Greece Budget".
  • Art  •  Culpeper, Virginia  •  3 months ago
    Greece is becoming a failed state. All the rioting will keep the tourists and cruise ships away.
    • wjmdurham 3 months ago
      And the loss of the tourists will only make things worse for the Greek people.
    • WorldTraveller 3 months ago
      Tourism is Greece's #1 revenue source, followed by shipping. I have been there several times and 'could care less of ever going back. The acropolis is very over rated as compared to other ruins of the world, and Athens is just a dirty crowded city.
    • j 3 months ago
      I think the idea was to keep corporate fascism away.
  • Daemonicus  •  Louisville, Kentucky  •  3 months ago
    This is what happens when an entitlement society breaks down. The US is heading the same way.
    • Sid Nukram 3 months ago
      The scary difference is Americans own guns. Rioting could get much uglier here.
    • Forrest 3 months ago
      I started gathering my defenses in 2011. Everyone should be prepared to defend their homes and families.
    • Ricardo C 3 months ago
      move out of the country if you don't like it, it's that easy...we don't need negative people like you living here...
  • Conservative Bob  •  Chicago, Illinois  •  3 months ago
    They're not gonna blame this on the tea party??
  • joe s  •  Kansas City, Missouri  •  3 months ago
    LOL, so this article describes the Greek version of stimulating the economy, clean up their mess.
  • nick  •  Nacogdoches, Texas  •  3 months ago
    One news program reported that the riots from yesterday should calm down today because the people of Greece had to go back to work today, I guess Sundays are for riots, once austerity goes gangbusters, the greeks will have all the free time to riot they want. It's going to be bad, but I hope i'm wrong on this one
  • mrc  •  3 months ago
    please google goldman sachs derivatives greece to see how they gleefully enabled the greeks to get into all this trouble
  • Tom Troxler  •  Highlands Ranch, Colorado  •  3 months ago
    So its back to half-time in Greece????
  • William  •  Las Vegas, Nevada  •  3 months ago
    Before the markets get excited again (it seems like they do it every other day), you might want to waited to see if any of these pledges actually happen. I bet it's a game of politicians promising anything to get their hands on more money.
  • Vmag83  •  3 months ago
    If this isn't a lesson on the failure of Keynesian economics, I don't know what is.
  • Boston Blackie  •  3 months ago
    In America the 3,000 FEMA camps have '4-person caskets' waiting.
    *
    For What?
  • Get Some...  •  3 months ago
    Greece does not have to repay their debts, they can always default and their country can go into a depression like we had in the 1920's...........
  • Jules  •  Tampa, Florida  •  3 months ago
    make greece the 51st state . Then bail it out on our money. whats the difference ...Its only a few hundred Billion. Our congressmen treat all money like its a fgment of our imagination .Nothing is real to them .
  • DDM  •  3 months ago
    The Greek media has done a very poor job and a disservice to Greece. They have not properly informed the population that a society based on kickbacks and that has a National Pastime of finding and bragging about elaborate ways to evade paying taxes, is not sustainable. Greek will never recover without a fundamental change in the mentality of it's population and I submit it is up to the media to be at the forefront of this change.
  • the cynic  •  3 months ago
    Just what exactly are these austerity measures? How much are the rioters losing? Do you have any numbers?
  • Peter S  •  Watervliet, New York  •  3 months ago
    Did you know you can rent a Greek in Europe? He will sleep late, eat lunch, have siesta so that you can work.
 
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