Greece bailout: Large protests expected against cuts
Greece bailout: Protesters gather for Athens rally
(about 7 hours later)
Greece is braced for large protests against further budget cuts, following a 130bn-euro (£110bn; $170bn) bailout deal aimed at avoiding bankruptcy.
Protesters are gathering outside parliament in Greece, in the wake of a 130bn-euro (£110bn; $170bn) bailout deal aimed at avoiding bankruptcy.
There are fears of more violence during the rallies called by trade unions as the public mood hardens, a BBC correspondent in Athens says.
Rallies called by the two main unions were due to take place, while MPs inside the building examined emergency laws required for the bailout.
Meanwhile the government is finalising emergency legislation demanded by international lenders.
They have a week to back 3.3bn euros in spending cuts tied to the EU/IMF deal.
It says Greece has avoided a nightmare scenario by agreeing to the bailout.
In a separate development, credit agency Fitch further downgraded Greece's rating from CCC to C.
The country has a week to approve a raft of spending cuts of more than 3bn euros tied to the bailout.
Although no vote is expected in parliament until Thursday, key parts of the EU/IMF bailout will be discussed at committee level, including the debt writedown by holders of Greek bonds known as the private sector involvement (PSI).
Emergency legislation, discussed by the Greek cabinet on Tuesday night, will be debated by MPs on Wednesday afternoon, although no vote is expected until Thursday.
Another measure being debated is a health bill that would further slash state spending, reports say.
The bill proposes cutting the current 751-euro minimum monthly wage by 22%, and also further cuts of pensions, reports say.
A week ago, Athens saw its worst rioting in years, as MPs passed a series of deeply unpopular austerity measures.
A key part of the bailout deal - the debt writedown by holders of Greek bonds - will be discussed at committee level before going to a vote by MPs on Thursday.
The Government has breathed a great sigh of relief that it has secured a deal needed to avoid bankruptcy next month.
The protest against measures demanded by the IMF and other eurozone governments has been planned to coincide with Wednesday's session of parliament.
But for the public, the mood is hardening and is pretty much as bleak as the weather in Athens.
A week ago, Athens saw its worst rioting in years as MPs passed a series of deeply unpopular austerity measures.
Parliament will be examining emergency legislation, part of the 3.3bn euros worth of savings that the government needs to get the bailout.
Greeks are a resilient people, well-versed in surmounting obstacles through their history. But that resilience is being sorely tested.
But the big unions and the communists have called for major protests.
The country has been living with punishing austerity for much of the past two years: unemployment has reached record heights at over 21%, the economy contracted by 7% in the last quarter of 2011.
And now, with the bailout deal approved in Brussels, the cuts are set to get deeper still.
And Greeks are growing ever more doubtful that the path ahead will lead them out of this crisis. The government is acutely aware that support for the bailout and the austerity measures is costing it dearly in the opinion polls.
"Workers in our country refuse to accept the barbarity of the tougher neo-liberal measures that have been extortionately imposed by our creditors," the GSEE private sector trade union warned earlier this week.
"We're in a constant battle, a constant effort," Ilias Iliopoulos, general secretary of the ADEDY union said. "We will insist: overturn this policy. We are not bound by any of these agreements."
Under Tuesday's agreement hammered out after marathon talks in Brussels:
Under Tuesday's agreement, hammered out after marathon talks in Brussels:
Greece will undertake to reduce its debt from 160% of GDP to 120.5% by 2020
private holders of Greek debt will take losses of 53.5% on the value of their bonds, with the real loss as much as 70%
eurozone experts will permanently monitor Greece's economic management
a constitutional change will give priority to debt repayments over the funding of government services
'Daily struggle'
Greece will undertake to reduce its debt from 160% of GDP to 120.5% by 2020
private holders of Greek debt will take losses of 53.5% on the value of their bonds, with the real loss as much as 70%
eurozone experts will permanently monitor Greece's economic management
a constitutional change will give priority to debt repayments over the funding of government services
On Tuesday, Finance Minister Evangelos Venizelos said the deal had given Greece a new opportunity, and had "avoided the nightmare scenario".
Fitch's decision to downgrade Greece's credit rating still further was a direct result of the bond swap agreement, under which private creditors will sustain enforced losses.
"What we have is the clear, explicit commitment of our peers that they will support us even after the end of the programme, until Greece returns to the markets," he said.
"The exchange, if completed, would constitute a 'distressed debt exchange'," Fitch said in a statement.
Greek Prime Minister Lucas Papademos told President Karolos Papoulias that the outcome of the negotiations in Brussels had been "extremely satisfactory".
Before private talks on Wednesday, he told the president in remarks broadcast by Greek television that "the decisions taken in Brussels and those that remain to be taken in Athens, will create the conditions for growth and the recovery of the Greek economy".
Opinion polls suggest that the two parties in the coalition government, which currently dominate parliament, are facing huge losses at the next election, scheduled for April.
Opinion polls suggest that the two parties in the coalition government, which currently dominate parliament, are facing huge losses at the next election, scheduled for April.
What went wrong in Greece?
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.
What went wrong in Greece?
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.
What went wrong in Greece?
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.
What went wrong in Greece?
Greece's economic problems meant lenders started charging higher interest rates to lend it money. Widespread tax evasion also hit the government's coffers.
What went wrong in Greece?
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.
What went wrong in Greece?
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.
What went wrong in Greece?
In 2010, the EU, IMF and ECB agreed a bailout worth 110bn euros (
What went wrong in Greece?
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.
What went wrong in Greece?
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.
What went wrong in Greece?
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.
What went wrong in Greece?
Greece's economic problems meant lenders started charging higher interest rates to lend it money. Widespread tax evasion also hit the government's coffers.
What went wrong in Greece?
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.
What went wrong in Greece?
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.
What went wrong in Greece?
In 2010, the EU, IMF and ECB agreed a bailout worth 110bn euros (
