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Greek MPs pass austerity plan amid violent protests Greece MPs pass austerity plan amid violent protests
(about 1 hour later)
Greece's parliament has passed a controversial package of austerity measures, demanded by the eurozone and IMF in return for a 130bn-euro ($170bn; £110bn) bailout to avoid default. Greek MPs have approved a controversial package of austerity measures, demanded by the eurozone and IMF in return for a 130bn euro ($170bn; £110bn) bailout.
The vote was carried by 199 votes in favour, with 74 MPs voting against. The vote was carried by 199 in favour to 74 against.
Coalition parties expelled over 40 deputies for failing to back the bill. Coalition parties expelled more than 40 deputies for failing to back the bill.
The vote came amid violent scenes in capital, Athens, and elsewhere, with protesters outside parliament throwing stones and petrol bombs. Tens of thousands protested in Athens, where there were widespread clashes and buildings were set on fire. Violent protests were reported in cities across the country.
Police fired tear gas and several buildings were set on fire in Athens. Protesters outside parliament threw stones and petrol bombs, and police responded with tear gas. Scores of police and protesters were injured.
Dozens of police officers and at least 37 protesters were injured, 23 suspected rioters were arrested and a further 25 detained, AP reports. Prime Minister Lucas Papademos urged calm, insisting that the austerity package would "set the foundations for the reform and recovery of the economy".
PM Lucas Papademos urged calm, saying violence had no place in a democracy.
Lawmakers have also approved a related deal to write off 100bn euros of Greek debt held by private banks.
Despite a rebellion by some MPs from parties in the ruling coalition, the result was expected, reports the BBC's Mark Lowen in Athens.
Late into the night, buildings in Athens were burning. It was clear that in some areas of the city police had effectively lost control, if only for a short time.Late into the night, buildings in Athens were burning. It was clear that in some areas of the city police had effectively lost control, if only for a short time.
Violence has occurred during votes before, but buildings have not been set ablaze for some time. Every event chips away at the confidence that the state is holding things together.Violence has occurred during votes before, but buildings have not been set ablaze for some time. Every event chips away at the confidence that the state is holding things together.
Emotions were also running high in parliament, with no-one voting for the plan with much enthusiasm. Greeks on the streets feel that the country cannot bear any more austerity. The eurozone's strategy for its survival is feeling the full force of public anger.Emotions were also running high in parliament, with no-one voting for the plan with much enthusiasm. Greeks on the streets feel that the country cannot bear any more austerity. The eurozone's strategy for its survival is feeling the full force of public anger.
Pasok, the largest party, and its coalition ally New Democracy - which have both backed the bill - account for more than 230 deputies out of a total of 300. "Vandalism, violence and destruction have no place in a democratic country and won't be tolerated," he said in a speech in parliament before the vote.
Following the vote the parties announced they had each expelled about 20 of the rebel MPs. The bill passed parliament easily as the two largest parties in the coalition - Pasok and New Democracy - account for more than two-thirds of the deputies.
'Vandalism' The austerity measures include:
There is mounting public anger in Greece and a feeling that the impact on ordinary people is beyond the value of the bailout, says our correspondent.
  • 15,000 public-sector job cuts
    •
  • liberalisation of labour laws
    •
  • lowering the minimum wage by 20% from 751 euros a month to 600 euros
    •
Some reports say as many as 80,000 people joined demonstrations in Athens, with another 20,000 protesting in Thessaloniki. There is mounting public anger in Greece and a feeling that the impact on ordinary people is beyond the value of the bailout, says the BBC's Mark Lowen in Athens.
Violent protests also spread to other Greek town and cities, including the holiday islands of Corfu and Crete, according to Reuters. At least 80,000 people were reported to have joined demonstrations in Athens, with another 20,000 protesting in Thessaloniki.
Running battles with police continued until late on Sunday, although no new clashes were reported after the vote. Running battles with police continued in the capital until late on Sunday, although no new clashes were reported after the vote.
Protesters hurled flares and chunks of marble torn up from the square. Some had tried to break through a cordon of riot police around the parliament.Protesters hurled flares and chunks of marble torn up from the square. Some had tried to break through a cordon of riot police around the parliament.
Several historic buildings, including cafes and cinemas, were set alight.Several historic buildings, including cafes and cinemas, were set alight.
Ioannis Simantiras, 34, said the protesters were boxed in by the police. Ioannis Simantiras, 34, said the protesters were boxed in by police.
"Nobody could get away from the gas," he told the BBC."Nobody could get away from the gas," he told the BBC.
"When it engulfed everybody, and everybody was choking the police drew back and opened up a corridor for us away from the parliament - that's when everybody made a run for it.""When it engulfed everybody, and everybody was choking the police drew back and opened up a corridor for us away from the parliament - that's when everybody made a run for it."
The austerity measures include: Violent protests also spread to other Greek towns and cities, including the islands of Corfu and Crete, according to state TV.
  • 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.
Mr Papademos had earlier said Greece did not have the luxury of such protests in such difficult times.
"Vandalism, violence and destruction have no place in a democratic country and won't be tolerated," he said in a speech in parliament before the vote.
"From you and your vote it will depend if Greece will remain in the euro or if it will be driven to an unruly default," he said.
"By voting for this economic programme and opening the road for the loan agreement you will set the foundations for the reform and recovery of the economy."

What went wrong in Greece?

Greece's economic reforms, which led to it abandoning the drachma as its currency in favour of the euro in 2002, made it easier for the country to borrow money.
Greece went on a big, debt-funded spending spree, including paying for high-profile projects such as the 2004 Athens Olympics, which went well over its budget.
The country was hit by the downturn, which meant it had to spend more on benefits and received less in taxes. There were also doubts about the accuracy of its economic statistics.
Greece's economic problems meant lenders started charging higher interest rates to lend it money. Widespread tax evasion also hit the government's coffers.
There have been demonstrations against the government's austerity measures to deal with its debt, such as cuts to public sector pay and pensions, reduced benefits and increased taxes.
The EU, IMF and European Central Bank agreed 229bn euros ($300bn; £190bn) of rescue loans for Greece. Prime Minister George Papandreou quit in November 2011 after trying to call a referendum.
Eurozone leaders are worried that if Greece were to default, and even leave the euro, it would cause a major financial crisis that could spread to much bigger economies such as Italy and Spain.
Under Prime Minister Lucas Papademos, Greece is trying to negotiate a big write-off of private debts and secure a second bail-out of 130bn euros ($170bn, £80bn) before a 20 March deadline.
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What went wrong in Greece?

Greece's economic reforms, which led to it abandoning the drachma as its currency in favour of the euro in 2002, made it easier for the country to borrow money.
Greece went on a big, debt-funded spending spree, including paying for high-profile projects such as the 2004 Athens Olympics, which went well over its budget.
The country was hit by the downturn, which meant it had to spend more on benefits and received less in taxes. There were also doubts about the accuracy of its economic statistics.
Greece's economic problems meant lenders started charging higher interest rates to lend it money. Widespread tax evasion also hit the government's coffers.
There have been demonstrations against the government's austerity measures to deal with its debt, such as cuts to public sector pay and pensions, reduced benefits and increased taxes.
The EU, IMF and European Central Bank agreed 229bn euros ($300bn; £190bn) of rescue loans for Greece. Prime Minister George Papandreou quit in November 2011 after trying to call a referendum.
Eurozone leaders are worried that if Greece were to default, and even leave the euro, it would cause a major financial crisis that could spread to much bigger economies such as Italy and Spain.
Under Prime Minister Lucas Papademos, Greece is trying to negotiate a big write-off of private debts and secure a second bail-out of 130bn euros ($170bn, £80bn) before a 20 March deadline.
BACK {current} of {total} NEXT
Finance Minister Evangelos Venizelos said the question was not "whether some salaries and pensions will be curtailed, but whether we will be able to pay even these reduced wages and pensions".Finance Minister Evangelos Venizelos said the question was not "whether some salaries and pensions will be curtailed, but whether we will be able to pay even these reduced wages and pensions".
"When you have to choose between bad and worse, you will pick what is bad to avoid what is worse," he said."When you have to choose between bad and worse, you will pick what is bad to avoid what is worse," he said.
New Democracy leader Antonis Samaras said: "The dramatic events in the centre of Athens harm Greece and hurt all the Greek people. Greece needs the bailout the make its next repayment on its huge sovereign debt.
"We have seen scenes that must not happen again in the future. I ask every Greek to show prudence, patriotism, calm, and unity," he added. If it cannot make the payment, it will default and in effect become bankrupt.
Earlier this week several ministers from the coalition government, including two from Pasok, quit their jobs in protest at the measures. Analysts say such a "chaotic default" could endanger Europe's financial stability and possibly even leading to a break-up of the eurozone.
As part of the deal with international lenders, Greece will also be able to write off 100bn euros of privately held debt.
Earlier this week several ministers from the coalition government, including two from Pasok, quit in protest at the measures.
The leader of the far-right Laos party, the junior coalition member, announced his 15 deputies would not back the austerity measures.The leader of the far-right Laos party, the junior coalition member, announced his 15 deputies would not back the austerity measures.
George Karatzaferis complained that the austerity measures amounted to the Greeks were being "humiliated" by Germany. George Karatzaferis complained that the measures amounted to Greeks being "humiliated" by Germany.
The eurozone bloc has demanded "strong political assurances" that the packages will be implemented regardless of which party wins a general election due in April.The eurozone bloc has demanded "strong political assurances" that the packages will be implemented regardless of which party wins a general election due in April.
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.
Are you in Athens? Have you seen or been a part of the protests? What do you make of the latest on the austerity package? You can share your thoughts and experience by filling in the form belowAre you in Athens? Have you seen or been a part of the protests? What do you make of the latest on the austerity package? You can share your thoughts and experience by filling in the form below
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