This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/world-europe-16987644

The article has changed 8 times. There is an RSS feed of changes available.

Version 0 Version 1
Athens clashes over Greece eurozone austerity deal Athens clashes over Greece eurozone austerity deal
(about 1 hour later)
Protesters have clashed with police in the Greek capital Athens, amid anger over fresh austerity measures approved under pressure from eurozone ministers. Greek protesters have clashed with police in Athens at the start of a 48-hour strike against austerity measures.
Demonstrators threw rocks and petrol bombs at police, who responded with tear gas. The clashes came after trade unions began a 48-hour strike. Demonstrators threw stones and police responded with tear gas, with reports of minor injuries on both sides.
Parliament is expected to vote on a package of cuts and reforms on Sunday. Greek leaders have been frantically trying to agree swingeing cuts demanded by the EU and IMF in return for a new 130bn-euro ($170bn; £110bn) bailout.
Eurozone ministers say MPs must approve it before Greece receives 130bn euros ($170bn; £110bn) in bailout funds. The smallest party in the coalition has withdrawn support for the package days before a parliamentary vote.
They are also demanding further budget cuts of 325m euros. The far-right Laos party complained that Greeks were being humiliated by Germany, and the party's four cabinet ministers offered their resignations.
A third condition set by the Eurozone ministers is that the Greek coalition gives "strong political assurances" on the implementation of the programme".
And so it wasn't enough. Days of political horse trading to agree on a package of cuts and still Brussels has said "do more". The frustration here in Athens is palpable.And so it wasn't enough. Days of political horse trading to agree on a package of cuts and still Brussels has said "do more". The frustration here in Athens is palpable.
Parliamentary approval should be the least of the problems. The coalition controls a large majority of MPs so even a backbench rebellion shouldn't sink the package. The 325m euros in extra savings are possibly feasible too - there is talk that defence could be further cut.Parliamentary approval should be the least of the problems. The coalition controls a large majority of MPs so even a backbench rebellion shouldn't sink the package. The 325m euros in extra savings are possibly feasible too - there is talk that defence could be further cut.
But written commitment to the cuts from the party leaders could be the sticking point. It's a tactic that Brussels has tried before and it faced stiff resistance from politicians who talk of national humiliation.But written commitment to the cuts from the party leaders could be the sticking point. It's a tactic that Brussels has tried before and it faced stiff resistance from politicians who talk of national humiliation.
But the price of failure is too high for Greece's government, which fears bankruptcy and a potential exit from the euro. And eurozone leaders are unlikely to cut Greece loose either. Germany's Angela Merkel has said "if the euro fails, Europe fails."But the price of failure is too high for Greece's government, which fears bankruptcy and a potential exit from the euro. And eurozone leaders are unlikely to cut Greece loose either. Germany's Angela Merkel has said "if the euro fails, Europe fails."
The ministers - who met in Brussels on Thursday - said the conditions must be fulfilled by next Wednesday, when they are due to meet again to consider releasing the bailout funds. The Laos party has 15 deputies in Greece's 300-strong parliament.
Greece cannot service its huge debt, and there are fears that a default could endanger Europe's financial stability and even lead to a break-up of the Eurozone. Two deputy ministers from the Socialist Pasok party, the largest in the coalition, have also quit their posts over the austerity proposals.
Deputy Foreign Minister Mariliza Xenogiannakopoulou, who quit on Friday afternoon, is the most senior defection so far.
But analysts say the cuts package should still have enough support in parliament because Pasok and its other coalition ally New Democracy account for more than 230 deputies.
Finance Minister Evangelos Venizelos said it was time for Greece to make a "final strategic choice".
"If we see the future of our country within eurozone, within Europe, we should do what we have to do for the programme to be approved," he said.
Last night the Greeks presented their plans for austerity cuts to a meeting of eurozone ministers in Brussels.
Their proposals include:
  • 15,000 public-sector job cuts
  • liberalisation of labour laws
  • lowering the minimum wage by 20% from 751 euros a month to 600 euros
  • negotiating a debt write-off with banks.
But the ministers demanded a further 325m euros in savings for this year. It is thought that the shortfall came because the Greek coalition could not agree to restructuring pensions.
The eurozone and IMF are also insisting that Greek leaders give "strong political assurances" on the implementation of the packages.
The ministers said the conditions must be fulfilled by next Wednesday, in time for another eurozone meeting to consider releasing the bailout funds.
The BBC's Mark Lowen in Athens says Greek politicians are frustrated that their planned cuts did not meet the demands of the eurozone and IMF.
But the government is likely to plough on, he says, because the prospect of bankruptcy and a potential exit from the eurozone strikes fear into the hearts of its leaders.
Greece cannot service its huge debt, and there are fears that a default could endanger Europe's financial stability and even lead to a break-up of the eurozone.
The country is already reeling from the effects of an earlier round of austerity that followed a previous bailout. Those cuts triggered widespread unrest and violent protests.The country is already reeling from the effects of an earlier round of austerity that followed a previous bailout. Those cuts triggered widespread unrest and violent protests.
Greece is deep in recession, with unemployment rising above 20%. The country is deep in recession, with unemployment rising above 20%.
The unions have condemned the latest proposed cuts as "painful measures" that would create misery.
Toughening mood
The BBC's Chris Morris in Brussels says that given Greece's worsening economy, there is concern among European ministers that the overall plan still does not do enough to put the country on a sustainable path.
It is the second such bailout and the mood among eurozone countries appears to be toughening on Greece, our correspondent adds.
While the official view is still that Greece must be saved, he says there is more and more talk on the margins that a Greek default would not be a disaster.
On Thursday, Greece's three-party coalition approved a new austerity plan aimed at securing fresh bailout money needed to meet a loan repayment due on 20 March.
The measures includes:
  • 15,000 public-sector job cuts
  • liberalisation of labour laws
  • lowering the minimum wage by 20% from 751 euros per month to 600 euros
  • negotiating a debt write-off with banks.
Reform of the pension system - a key demand of the EU, IMF and European Central Bank - proved to be a stumbling block.
Talks broke up without an agreement, but officials later announced that a compromise had been reached.
Greek Finance Minister Evangelos Venizelos, of the left-wing Pasok party, launched an attack on his conservative rival Antonis Samaras after attending the finance ministers' meeting.
Mr Venizelos said his European counterparts "took into consideration that [Mr] Samaras has still not signed" a letter committing to spending cuts and reforms.
"The (conservative) party must decide - if they want to stay in the eurozone, they have to say so clearly," Mr Venizelos said, AFP reports.