This article is from the source 'guardian' 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.guardian.co.uk/business/2012/feb/13/eurozone-crisis-greece-austerity-package-vote

The article has changed 16 times. There is an RSS feed of changes available.

Version 1 Version 2
Eurozone crisis live: Greece parliament approves austerity package Eurozone crisis live: Greece parliament approves austerity package
(40 minutes later)
9.16am: In Greece, Athenians are facing the aftermath of last night's savage street fighting, which lasted for around 10 hours.
Helena Smith, our correspondent in Athens, says that parts of Athens' historic centre now lies in tatters -- including the burned out shells of buildings, including some of the capital's fabulous 19th century edifices, in the shops looted and smashed, in the cafes still smouldering and destroyed.
Helena reports:
Unsurprisingly, the vandalism made for as much coverage in the press this mornign as the austerity measures Greeks will have to endure for the best part of the next decade to make their nation's debt mountain even begin to look sustainable.
"Yes through fire and tears," Ta Nea, the mass-selling daily, proclaimed from its front page in reference to the vote's passage.
But it should be pointed out, as this appears to have been lost in coverage, that it was unidentifiable hooded youths hijacking an otherwise peaceful anti-austerity demonstration who were behind the violence, not hard-working Greeks badly hit by tax hikes and repeated wage and pension cuts who took to the streets not because they wanted a fight but to vent their spleen.
They are as shell-shocked as the shop-owners who turned up to work this morning to find their properties in tatters.
8.53am: Shares in Greek banks jumped by 10% in Athens this morning, on relief that the vote was passed. That follows an 8% drop on Friday night, as a series of ministers quit Lucas Papademos's coalition.
But with Greece entering a fifth year of recession, economists say there is little reason for optimism this morning. Robin Bew, chief economist of The Economist Intelligence Unit, questioned how Greece's GDP could expand in the face of deeper austerity measures:
Greek parliament approves cuts, amid riots. No disorderly default. But can they grow?
— Robin Bew (@RobinBew) February 13, 2012
8.30am: City analysts are speculating that the situation in Greece could be thrown into confusion in a couple of months if Antonis Samaras, head of the New Democracy party, becomes Greece's next prime minister.8.30am: City analysts are speculating that the situation in Greece could be thrown into confusion in a couple of months if Antonis Samaras, head of the New Democracy party, becomes Greece's next prime minister.
Samaras, the current front-runner to replace Lucas Papademos, told parliament last night: "I ask you to vote in favour of the new loan agreement today and to have the ability to negotiate and change the current policy which has been forced on us".Samaras, the current front-runner to replace Lucas Papademos, told parliament last night: "I ask you to vote in favour of the new loan agreement today and to have the ability to negotiate and change the current policy which has been forced on us".
That would rather thwart the Troika's demands that Greece's leaders all pledge to implement the current plan, as Megan Greene of Roubini Economics pointed out on Twitter:That would rather thwart the Troika's demands that Greece's leaders all pledge to implement the current plan, as Megan Greene of Roubini Economics pointed out on Twitter:
Samaras demands bailout be renegotiated after elections and troika insists he sign that he'll uphold 2nd bailout. We still have a problem.Samaras demands bailout be renegotiated after elections and troika insists he sign that he'll uphold 2nd bailout. We still have a problem.
— Megan Greene (@economistmeg) February 13, 2012— Megan Greene (@economistmeg) February 13, 2012
Samaras also said his party will "demand the dissolution of parliament and immediate elections" once the second rescue deal is ageed.Samaras also said his party will "demand the dissolution of parliament and immediate elections" once the second rescue deal is ageed.
Elisabeth Afseth, analyst at Investec, also warned this morning that "the next Greek crisis is then likely to come with the approaching election". New Democracy wants that vote to be held in April......Elisabeth Afseth, analyst at Investec, also warned this morning that "the next Greek crisis is then likely to come with the approaching election". New Democracy wants that vote to be held in April......
8.22am: Greece must still clear four hurdles before it receives its €130bn bailout package.8.22am: Greece must still clear four hurdles before it receives its €130bn bailout package.
1) The eurogroup of finance ministers, which meets on Wednesday night, must agree that it has now met the terms of the package
2) The leaders of its political parties must pledge in writing that they will implement it.
3) The German Bundestag must vote to approve the package, probably on February 27th.
4) The long-running negotiations with its creditors over debt restructuring (the Private Sector Involvement) must be concluded.
1) The eurogroup of finance ministers, which meets on Wednesday night, must agree that it has now met the terms of the package
2) The leaders of its political parties must pledge in writing that they will implement it.
3) The German Bundestag must vote to approve the package, probably on February 27th.
4) The long-running negotiations with its creditors over debt restructuring (the Private Sector Involvement) must be concluded.
Gilles Moer of Deutche Bank told Bloomberg TV this morning that it is essential for Greece to maintain its credibility with its international partners. He said that the demand for Greece's leaders to make a commitment in writing "shows the pressure that the Troika is still prepared to put on Greece".Gilles Moer of Deutche Bank told Bloomberg TV this morning that it is essential for Greece to maintain its credibility with its international partners. He said that the demand for Greece's leaders to make a commitment in writing "shows the pressure that the Troika is still prepared to put on Greece".
8.09am: European stock markets have rallied this morning following the Athens vote. The FTSE 100 has gained 49 points in the first few minutes of trading to 5901, around 0.85%. The French and German indices are showing similar gains, while the Italian MIB is 1.5% higher.8.09am: European stock markets have rallied this morning following the Athens vote. The FTSE 100 has gained 49 points in the first few minutes of trading to 5901, around 0.85%. The French and German indices are showing similar gains, while the Italian MIB is 1.5% higher.
The euro also strengthened this morning, to $1.3275.The euro also strengthened this morning, to $1.3275.
7.57am: Germany's economy minister has warned that last night's vote will not be enough to guarantee that Greece receives its €130bn bailout.7.57am: Germany's economy minister has warned that last night's vote will not be enough to guarantee that Greece receives its €130bn bailout.
Speaking earlier this morning, Phillip Rösler said the vote was merely a "necessary condition" on the path to Greece's second rescue package, as Athens must also prove that the measures will be implemented.Speaking earlier this morning, Phillip Rösler said the vote was merely a "necessary condition" on the path to Greece's second rescue package, as Athens must also prove that the measures will be implemented.
Rösler added that the German parliament must receive a report on Greece from the Troika [the IMF, the EU and the ECB] before deciding whether to give its approval for the bailout fund.Rösler added that the German parliament must receive a report on Greece from the Troika [the IMF, the EU and the ECB] before deciding whether to give its approval for the bailout fund.
That vote is expected to take place in the Bundestag on 27 February.That vote is expected to take place in the Bundestag on 27 February.
7.50am: The scenes of mayhem on the streets of Athens last night, and in other parts of Greece, show the depth of public anger against the package. As we reported last night:7.50am: The scenes of mayhem on the streets of Athens last night, and in other parts of Greece, show the depth of public anger against the package. As we reported last night:
More than 40 buildings were set ablaze in an orgy of looting that left scores injured as protesters vented their anger at the caretaker government and parliament's ordering of a further €3.3bn of savings by slashing wages and pensions and laying off public sector workers.More than 40 buildings were set ablaze in an orgy of looting that left scores injured as protesters vented their anger at the caretaker government and parliament's ordering of a further €3.3bn of savings by slashing wages and pensions and laying off public sector workers.
This picture from last night shows protesters running away from teargas during clashes between protesters and riot police near the Greek parliament.This picture from last night shows protesters running away from teargas during clashes between protesters and riot police near the Greek parliament.
Prime minister Lucas Papademos warned that banks would collapse and schools and hospitals would be left without funds unless the bill passed. But 43 MPs failed to back the bill, with some arguing that Greece would be better off refusing to implement the measures and defaulting its debts. All those MPs have now been expelled from the coalition government.Prime minister Lucas Papademos warned that banks would collapse and schools and hospitals would be left without funds unless the bill passed. But 43 MPs failed to back the bill, with some arguing that Greece would be better off refusing to implement the measures and defaulting its debts. All those MPs have now been expelled from the coalition government.
7.45am: Good morning, and welcome to our rolling coverage of the eurozone financial crisis.7.45am: Good morning, and welcome to our rolling coverage of the eurozone financial crisis.
Late last night the Greek parliament approved the controversial austerity package demanded by its lenders in return for its second rescue fund. The vote took place as violent scenes raged in Athens, where running battles raged between protesters and riot police.Late last night the Greek parliament approved the controversial austerity package demanded by its lenders in return for its second rescue fund. The vote took place as violent scenes raged in Athens, where running battles raged between protesters and riot police.
We'll be following the reaction to the vote today in Athens, and across Europe.We'll be following the reaction to the vote today in Athens, and across Europe.