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| Greece bailout: Lucas Papademos warns of default chaos | Greece bailout: Lucas Papademos warns of default chaos |
| (40 minutes later) | |
| Greece faces "uncontrolled economic chaos" if it fails to agree spending cuts and defaults on its debts, Prime Minister Lucas Papademos has warned. | Greece faces "uncontrolled economic chaos" if it fails to agree spending cuts and defaults on its debts, Prime Minister Lucas Papademos has warned. |
| He said ministers who disagreed with austerity measures could not stay in the coalition government, hours after four ministers resigned over the issue. | He said ministers who disagreed with austerity measures could not stay in the coalition government, hours after four ministers resigned over the issue. |
| Greek leaders are trying to enact cuts demanded by the EU and IMF for a 130bn-euro ($170bn; £110bn) bailout. | Greek leaders are trying to enact cuts demanded by the EU and IMF for a 130bn-euro ($170bn; £110bn) bailout. |
| Unions have begun a 48-hour strike, and protesters clashed with police earlier. | Unions have begun a 48-hour strike, and protesters clashed with police earlier. |
| The prime minister said he would do "whatever it takes" to get the deal approved in a parliamentary vote set for Sunday. | The prime minister said he would do "whatever it takes" to get the deal approved in a parliamentary vote set for Sunday. |
| "We cannot allow Greece to go bankrupt," he told his cabinet, saying it was an "hour of historic responsibility". | "We cannot allow Greece to go bankrupt," he told his cabinet, saying it was an "hour of historic responsibility". |
| "A disorderly default would plunge our country in a disastrous adventure. It would create conditions of uncontrolled economic chaos and social explosion," he said. | "A disorderly default would plunge our country in a disastrous adventure. It would create conditions of uncontrolled economic chaos and social explosion," he said. |
| Protest clashes | Protest clashes |
| Earlier, three ministers from the far-right Laos party, a junior partner in the three-party coalition, quit their jobs as deputy ministers. | Earlier, three ministers from the far-right Laos party, a junior partner in the three-party coalition, quit their jobs as deputy ministers. |
| The party's leader complained that Greeks were being humiliated by Germany, and announced its 15 deputies would not back the austerity measures. | The party's leader complained that Greeks were being humiliated by Germany, and announced its 15 deputies would not back the austerity measures. |
| Deputy Foreign Minister Mariliza Xenogiannakopoulou, who quit on Friday afternoon, is the most senior defection so far. | Deputy Foreign Minister Mariliza Xenogiannakopoulou, who quit on Friday afternoon, is the most senior defection so far. |
| 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." |
| Her Pasok party, the largest in the coalition, also suffered the loss of a deputy labour minister on Thursday. | Her Pasok party, the largest in the coalition, also suffered the loss of a deputy labour minister on Thursday. |
| 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 out of a total of 300. | 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 out of a total of 300. |
| Earlier, an estimated 17,000 union members and communists took to the streets of Athens, marching to mark the start of a two-day general strike. | Earlier, an estimated 17,000 union members and communists took to the streets of Athens, marching to mark the start of a two-day general strike. |
| Protesters also gathered near the parliament building. | Protesters also gathered near the parliament building. |
| Some demonstrators threw stones and petrol bombs at police, who responded by firing tear gas. A small number of people from both sides suffered minor injuries. | Some demonstrators threw stones and petrol bombs at police, who responded by firing tear gas. A small number of people from both sides suffered minor injuries. |
| Last night the Greeks presented their plans for austerity cuts to a meeting of eurozone ministers in Brussels. | Last night the Greeks presented their plans for austerity cuts to a meeting of eurozone ministers in Brussels. |
| Their proposals include: | Their proposals include: |
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| 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. | 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 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 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. | 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. | 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. | 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. |
| The country is deep in recession, with unemployment rising above 20%. | The country is deep in recession, with unemployment rising above 20%. |