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Greece: Papandreou urges MPs to back austerity plan | Greece: Papandreou urges MPs to back austerity plan |
(25 days later) | |
Greek PM George Papandreou has told MPs his severe austerity plan is the only way to get Greece back on its feet. | Greek PM George Papandreou has told MPs his severe austerity plan is the only way to get Greece back on its feet. |
He was speaking as parliament debated the plan, the approval of which needed to secure fresh international loans. | He was speaking as parliament debated the plan, the approval of which needed to secure fresh international loans. |
The planned cuts and sell-offs have sparked nationwide strikes and violent protests, but the alternative appears to be national debt default. | The planned cuts and sell-offs have sparked nationwide strikes and violent protests, but the alternative appears to be national debt default. |
The bill is due to go to a vote on Wednesday and - if passed - would come into force the following day. | The bill is due to go to a vote on Wednesday and - if passed - would come into force the following day. |
It would trigger the release of 12bn euros (£10.7bn) in loans to Greece from the European Union and International Monetary Fund. | It would trigger the release of 12bn euros (£10.7bn) in loans to Greece from the European Union and International Monetary Fund. |
The outcome of the debate is uncertain. Mr Papandreou faces opposition from within his own Socialist ranks, with two of his own deputies saying they may oppose the bill. | The outcome of the debate is uncertain. Mr Papandreou faces opposition from within his own Socialist ranks, with two of his own deputies saying they may oppose the bill. |
His governing Pasok party has a slim majority, with 155 seats out of 300 in parliament. | His governing Pasok party has a slim majority, with 155 seats out of 300 in parliament. |
The package of measures, including tax increases, spending cuts and the sale of state assets, is thought to be worth 28bn euros in savings over five years. | The package of measures, including tax increases, spending cuts and the sale of state assets, is thought to be worth 28bn euros in savings over five years. |
'Only chance' | 'Only chance' |
Addressing MPs on Monday evening, Mr Papandreou called on all political parties to back the five-year plan. | Addressing MPs on Monday evening, Mr Papandreou called on all political parties to back the five-year plan. |
What went wrong in Greece? | What went wrong in Greece?BACK {current} of {total} NEXT |
"Our vote is the only chance for the country to get back on its feet," he said. | "Our vote is the only chance for the country to get back on its feet," he said. |
In an interview published on Sunday, Deputy Prime Minister Theodor Pangalos was optimistic about winning the first round of general votes on tax and spending targets and the creation of a privatisation agency. | In an interview published on Sunday, Deputy Prime Minister Theodor Pangalos was optimistic about winning the first round of general votes on tax and spending targets and the creation of a privatisation agency. |
But he was more cautious about whether the government could get through further legislation on individual budget measures and the privatisation of specific state assets. | But he was more cautious about whether the government could get through further legislation on individual budget measures and the privatisation of specific state assets. |
Unions have called a two-day national strike starting on Tuesday. | Unions have called a two-day national strike starting on Tuesday. |
Even as the next slice of aid under the existing 110bn euro bail-out is being discussed, the EU and the IMF are debating a second rescue package that could rival the size of the existing one. | Even as the next slice of aid under the existing 110bn euro bail-out is being discussed, the EU and the IMF are debating a second rescue package that could rival the size of the existing one. |
They want private lenders to help out with this for the first time by agreeing to softer lending terms for the Greeks. | They want private lenders to help out with this for the first time by agreeing to softer lending terms for the Greeks. |
Investors' warnings | Investors' warnings |
French President Nicolas Sarkozy has said his country's banks would help Greece out of its crisis by allowing it to repay its debts over 30 years. | French President Nicolas Sarkozy has said his country's banks would help Greece out of its crisis by allowing it to repay its debts over 30 years. |
In a rollover plan being worked out by the French government and finance chiefs, major French banks were prepared to re-lend 70% of Greek loans they hold, France's Figaro newspaper reported on Monday. | In a rollover plan being worked out by the French government and finance chiefs, major French banks were prepared to re-lend 70% of Greek loans they hold, France's Figaro newspaper reported on Monday. |
The British Treasury has denied it is pressing banks to "take a haircut" on their Greek debt investments. | The British Treasury has denied it is pressing banks to "take a haircut" on their Greek debt investments. |
On Monday, two major investors warned of the gravity of the situation facing Europe. | On Monday, two major investors warned of the gravity of the situation facing Europe. |
The joint head of the world's biggest bond fund manager, Pimco, said restructuring Greece's sovereign debt was inevitable. | The joint head of the world's biggest bond fund manager, Pimco, said restructuring Greece's sovereign debt was inevitable. |
The firm's co-chief investment officer, Mohamed El-Erian, warned the nation's problems could "contaminate" Europe. | The firm's co-chief investment officer, Mohamed El-Erian, warned the nation's problems could "contaminate" Europe. |
And leading investor George Soros, who reportedly made £1bn when the pound crashed out of the euro's forerunner, the ERM, said the world was on the brink of another disaster. | And leading investor George Soros, who reportedly made £1bn when the pound crashed out of the euro's forerunner, the ERM, said the world was on the brink of another disaster. |
Mr Soros said it was almost inevitable that one or more eurozone country would exit the single currency. | Mr Soros said it was almost inevitable that one or more eurozone country would exit the single currency. |